Posted By:
Corey R. Shanushere's what you're not seeing. Auction houses do have duties to buyers, even though they are selling items on behalf of consignors. These duties, which can arise under applicable state law and/or the auction house's own terms and conditions of sale, can compel an auction house to refund to the buyer his/her money if the item turns out to be a fake. In such an instance, the auction house can then (i) turn to the consignor for restitution (if the consignor has already been paid) or (ii) withhold payment to the consignor (if the consignor has not yet been paid). In either case, though, it is the auction house's responsibility alone to deal with the consignor. To the good faith purchaser of the item, all he/she has to do is deal with the auction house.