Posted By:
P SpaethI don't see any liability unless you can prove the auction house/consignor actually knew or was reckless in not knowing the card in question was altered and that the opinion expressed by the grading service was wrong. Otherwise they are not selling a guarantee of authenticity just an opinion. EDITED TO ADD The mere fact that the auction house/consignor know that SOME cards are improperly slabbed would not create liability in my opinion, one because the same thing is known generally by buyers who assume that risk, and two because unless it was so obvious the auction/house consignor knew or was reckless in not knowing, it really says nothing about the particular card in question.
Now here is a question I find increasingly interesting: does a seller have an obligation to state if a card in a holder has been rejected by another company? Generally there is an obligation to disclose "material" facts. Why isn't that material?