Disappointed consignor

[Snapolit1]

No idea if this happened, but an AH running an item up knowing they can stop just under the reserve price seems, well, a little problematic.

[Aquarian Sports Cards]

Originally Posted by Snapolit1

No idea if this happened, but an AH running an item up knowing they can stop just under the reserve price seems, well, a little problematic.

There are a couple that give themselves that right in their T&C. Goldin is one of them. As long as it's disclosed it's legal.

[Snapolit1]

Originally Posted by Aquarian Sports Cards

There are a couple that give themselves that right in their T&C. Goldin is one of them. As long as it's disclosed it's legal.

Scott,

Again, hypothetically speaking ….

If an auction house knows what the reserve is, it knows that its bids essentially are a nullity and have no chance of actually winning an item …. there is no ethical issues raised by this?

So an AH could have TWO bidders running something up with full knowledge that neither of them could possibly buy it?

Weird.

[G1911]

What is legal and what is ethical are unrelated.

I will never place a bid with an auction house that gives themselves the right to bid and run the price up, or has been caught doing so. I'm surprised just a little bit that this is still a minority view.

[Snapolit1]

Well, not to get overly arcane here, but there are legal doctrines under the common or statutory law and arguments based in notions of equity. An equitable argument could be that while this was some act was not technically illegal under a specific law it was unfair under principles of fundamental fairness and should not be allowed to stand.

[Mark17]

Originally Posted by Snapolit1

Well, not to get overly arcane here, but there are legal doctrines under the common or statutory law and arguments based in notions of equity. An equitable argument could be that while this was some act was not technically illegal under a specific law it was unfair under principles of fundamental fairness and should not be allowed to stand.

Who was damaged?

[Shoeless Moe]

Originally Posted by Snapolit1

Well, not to get overly arcane here, but there are legal doctrines under the common or statutory law and arguments based in notions of equity. An equitable argument could be that while this was some act was not technically illegal under a specific law it was unfair under principles of fundamental fairness and should not be allowed to stand.

eh.....Heritage does it too, not sure who else, guessing more than a few. I'm more perplexed why Goldin, knowing this just sold not too long ago for 500K would agree on a Reserve of at least 8 Million.

[conor912]

I have always thought that reserves are stupid. Just start the auction at 10M. All those arguments about starting low to build momentum, draw in more bidders, etc are ridiculous. If someone thinks it’s worth it, they bid…always.

[Aquarian Sports Cards]

Originally Posted by Snapolit1

Well, not to get overly arcane here, but there are legal doctrines under the common or statutory law and arguments based in notions of equity. An equitable argument could be that while this was some act was not technically illegal under a specific law it was unfair under principles of fundamental fairness and should not be allowed to stand.

Problem is it is specifically elucidated as legal in the UCC auction section. Notification is necessary, and the terms and conditions serve that purpose.

"If the auctioneer knowingly receives a bid on the seller's behalf or the seller makes or procures such a bid, and notice has not been given that liberty for such bidding is reserved, the buyer may at his option avoid the sale or take the goods at the price of the last good faith bid prior to the completion of the sale."

[Aquarian Sports Cards]

Originally Posted by Snapolit1

Scott,

Again, hypothetically speaking ….

If an auction house knows what the reserve is, it knows that its bids essentially are a nullity and have no chance of actually winning an item …. there is no ethical issues raised by this?

So an AH could have TWO bidders running something up with full knowledge that neither of them could possibly buy it?

Weird.

I have learned to stop offering opinions where other companies are concerned. My new hobby is stating facts.