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Legal question about auctions??

ForkliftkingForkliftking Member Posts: 4,907 ✭✭✭
edited October 2012 in General Discussion
I consigned some equipment to an auction company for them to sell at their consignment auction last week. Well, the auction company caled me this morning and said one of items that sold that the buyer stopped payment on his check because he wasn't satisified with his purchase. Then they told me I had to go pick my equipment back up at the auction site. At the beginning of the auction it was announced that everything sold "AS IS" to the highest bidder.

I asked the auction company if they were going to sue the high bidder for breech of contract or should I sue them (the auction company) for breech of contract? I have about 10 hours in labor hauling my equipment to the auction then attending the auction and will have about 3 more hours going to haul my equipment back. What course of action should I take in all of this?
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Comments

  • CDMeadCDMead Member Posts: 2,141 ✭✭
    edited November -1
    Depending upon the state you may be able to file a complaint with whatever agency oversees auctioneers.

    In Texas, the Texas Department of Licensing and Regulation (TDLR) takes all complaints very seriously.

    A reputable company should try to make an amenable solution to both parties. Sometimes, however, the buyer is just a jerk.
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  • mark christianmark christian Member Posts: 24,443 ✭✭✭✭
    edited November -1
    Forget all about the buyer; your arrangements were made with the auction company and not the end purchaser. Your damages in this case are actually very limited so your ability to sue and recover anything is limited as well. Since it appears that only one of several items was returned and everything else you hauled up to the auction was sold your only damage is the amount of money needed to drive back to the auction company to pick up that lone piece of equipment and haul it home. You can't get money for hauling it up there since it was just one item in a larger consignment and all of those items sold. Your presence at the auction itself cannot be reimbursed unless it was absolutely vital that you be on hand to sign away titles, otherwise it will be argued that you were there either out of curiosity or for your own entertainment. If you decide to sue the auction compnay you can expect them to bill you for the storage of whatever piece of equipment is involved starting today.
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  • nmyersnmyers Member Posts: 16,890 ✭✭✭✭
    edited November -1
    Mark is right. Most auction companies require that you sign an agreement when you list your items; if you did, you may want to read it.

    Most states have a "warranty of merchantability" law that requires any item sold to be suitable for the purpose for which it is intended; if it is not, the buyer must be given a full refund regardless of any AS IS sale condition.

    Neal
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  • ForkliftkingForkliftking Member Posts: 4,907 ✭✭✭
    edited November -1
    I sopke with the owner of the auction company. Since he is only loosing his commission of 5% on my item (which comes out to $800 on his part), he says it isn't worth their time to pursue this matter any further. Their only offer was to move my piece to the next auction they are having and try to sell it again. That would equal a haul bill of about $150 that they are willing to pay. I hate to back down but I'm headed back to pick up my equipment in the morning. I'll just write it off as a lesson learned and will never use this company again.
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  • k.stanonikk.stanonik Member Posts: 2,109 ✭✭
    edited November -1
    I have been in the Industrial Auction industry for the last 12 years.
    Yes items are sold as is where is with no warranty implied, buyers do back out and unless it is generally over a $20,000 or more item it isn't worth the legal expense to go after the buyer
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  • andrewsw16andrewsw16 Member Posts: 10,728 ✭✭✭
    edited November -1
    If you have left anything with anyone for auction, go collect YOUR money from them absolutely as soon as possible after the auction. That will give them an incentive to enforce the sale on anyone with buyer's remorse.
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  • MIKE WISKEYMIKE WISKEY Member Posts: 10,042 ✭✭✭✭
    edited November -1
    "Their only offer was to move my piece to the next auction they are having and try to sell it again. That would equal a haul bill of about $150 that they are willing to pay'...............this sounds like they are trying to meet you half way and make it right, not their fault, not your fault.
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  • select-fireselect-fire Member Posts: 69,491 ✭✭✭✭
    edited November -1
    Lesson learned. Try another auction co. They release item when check clears bank and you are paid. What if the buyer did damage or just intended to use it one time for a job and returned it? DO NOT release item until you have the money in hand. Put that in writing.
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  • FW357FW357 Member Posts: 435 ✭✭✭
    edited November -1
    I sopke with the owner of the auction company. Since he is only losing his commission of 5%


    Where is this auction house that charges only 5% commission? Around here it is anywhere from 25% to 40% commission. Depends on what one is selling.
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  • ForkliftkingForkliftking Member Posts: 4,907 ✭✭✭
    edited November -1
    quote:Originally posted by FW357
    I sopke with the owner of the auction company. Since he is only losing his commission of 5%


    Where is this auction house that charges only 5% commission? Around here it is anywhere from 25% to 40% commission. Depends on what one is selling.

    Well 5% of the selling price was going to put $800 in his pocket. It sold for $16k. I will never do business with this company again. Ritchie Brothers has never given me this type of problem.
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  • MercuryMercury Member Posts: 7,836 ✭✭✭
    edited November -1
    What kind of idiot company takes regular checks for something that costs $16k? They are just asking to get screwed. Good idea to not use them again, they are fools.

    Merc
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  • JunkballerJunkballer Member Posts: 9,294 ✭✭✭✭
    edited November -1
    Most auction companies require bank letters of buyers verifying and garaunteeing check/funds up to a certan amount.

    "Never do wrong to make a friend----or to keep one".....Robert E. Lee

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