AUCTION LAW

Auctioneers are bound by several laws but the Uniform Commercial Code is the main law. Each state has adapted versions of this law but look up your state statutes on this law and how it pertains to auctioneers.

Some states have auctioneer licensing laws so look up your states laws on this.

Alaska has no auctioneer license/ethics law so the UCC laws as adapted by the state hold precedence.

This post is not to be used or construed as legal advice for that talk to a lawyer.

2-328. Sale by Auction.

(1) In a sale by auction if goods are put up in lotseach lot is the subject of a separate sale.

(2) A sale by auction is complete when the auctioneer so announces by the fall of the hammer or in other customary manner. Where a bid is made while the hammer is falling in acceptance of a prior bid the auctioneer may in his discretion reopen the bidding or declare the goodssold under the bid on which the hammer was falling.

(3) Such a sale is with reserve unless the goods are in explicit terms put up without reserve. In an auction with reserve the auctioneer may withdraw the goods at any time until he announces completion of the sale. In an auction without reserve, after the auctioneer calls for bids on an article or lot, that article or lot cannot be withdrawn unless no bid is made within a reasonable time. In either case a bidder may retract his bid until the auctioneer’s announcement of completion of the sale, but a bidder’s retraction does not revive any previous bid.

(4) 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 faithbid prior to the completion of the sale. This subsection shall not apply to any bid at a forced sale.

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