Alteration vs. Conservation Defined

[Peter_Spaeth]

Originally Posted by benjulmag

Not being a slabbed card collector I am unfamiliar with the legal obligations of grading companies and don't know what if any disclaimers and/or damages limitations language is contained in their submission form.

Here's my question. I buy a PSA 8 T206 Cobb for $150k.
I subsequently CONCLUSIVELY establish through advanced forensic testing that the card was altered in such a manner that it should have been graded an "A". Am I entitled to receive damages from PSA and if so, what would they be?

It would seem to me that if PSA is on the hook for the $150k I paid for the card (and in return PSA has the right to resell the card (this time graded "A") and keep the sale proceeds), they have one huge contingent liability on their balance sheet. If I am correct in my view that the (great) majority of many types of N and T cards graded 8' and higher are altered, which alterations could be conclusively established through sophisticated forensic testing, PSA potentially could be wiped out.

Am I wrong in this assessment?

Q: Do you guarantee the grades for my cards?
A: PSA guarantees that all cards submitted to it shall be graded in accordance with PSA grading standards and under the procedures of PSA. If PSA, in fact, concludes that the card in question no longer merits the PSA grade assigned or fails PSA’s authenticity standards, PSA will either: 1) Buy the card from the submitter at the current market value if the card can no longer receive a numerical grade under PSA's standards, or 2) Refund the difference in value between the original PSA grade and the current PSA grade if the grade is lowered. In this case, the card will also be returned to the customer along with the refund for the difference in value.

[Peter_Spaeth]

Corey I am sure their auditors must review and approve of their reserve for the guaranty, it will be interesting to see if recent events affect that. I've always thought it was a time bomb and expected them to someday revoke it. Of course they do have control -- they have to agree with you.