NY State Senate Bill 2009-S3668

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to consumer protection
Mar 27, 2009	referred to consumer protection

co-Sponsors

2009-S3668 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §29, Gen Bus L

2009-S3668 (ACTIVE) - Summary

Specifies auction requirements; holds the auctioneer responsible for truth of statements in catalogues, announcements, etc.

2009-S3668 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3668

 TITLE OF BILL :

An act to amend the general business law, in relation to auction
requirements


 PURPOSE OR GENERAL IDEA OF BILL :

To provide clear and extensive disclosure requirements on auction
houses to consumers.

 SUMMARY OF SPECIFIC PROVISIONS :

Section one of the bill is Legislative findings.

Section two are the new provisions detailing the extensive disclosure
requirements. The bill requires specific disclosure requirements as to
auction catalogues, the auction house's interest in an article,
reserve price, loans between the auction house and any purchaser,
loans by the auction house to any consignor, prohibition on
"chandelier" or auction house bids unless disclosed to the bidding
audience, items offered as a result of a business liquidation.

The bill also establishes minimum requirements for contracts between

auction houses and sellers as to fees, commissions and charges,
reserve prices, assurance of title, and rebate commissions.

Lastly, the bill provides for minimum safeguards for purchasers;
itemized invoices for lots purchased, estimated values of lots,
disclosures on reserve prices, assurance of title, prohibitions on
certain practices including combining lots, blind items and bartered
sales.

Section three is the effective date.

 EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER :

Present law does not regulate the disclosure requirements put in place
by this bill as to consignor sales and contracts between auction
houses, bidders and sellers.

 JUSTIFICATION :

Certain auction houses have been criticized for practices that allow
for If chandelier" or sham bids by in-house auction personnel in order
to "goose" bidding or "raise enthusiasm" for lots offered for sale. A
sham or "chandelier" bid is any bid for which there is no bonifide
offer or bidder. Also known as a "phantom" bid, this is a bid
announced by the bid caller even though there is no bid of this
amount. It is a device sometimes used by bid callers to keep the bid
alive and moving upward. At Legislative hearings, testimony was heard
that sham or chandelier bids are used by auction houses as a means of
obtaining bids that meet and/or exceed the reserve price. The
Committees received testimony that raised serious concerns over this
practice. Witnesses testified that sham bidding undermines confidence
in the art market, and that such bids are deceptive and should be
prohibited. Sham bids create a false atmosphere of interest in offered
work that may not actually exist and deprives the public of any real
knowledge of the true level of interest for the work. Under the
provision of this bill, an auctioneer would be required to announce,
at the end of a round of bidding, whether an item had been left
unsold. Also required would be an announcement prior to the auction,
when applicable, the practice of "bidding on behalf of the consignor"
- sometimes called "taking bids off the chandelier." Ending this
practice in combination with the other disclosure and contract
requirements of this bill will go a long way to enhancing protections
for the bidding public and consumers during an auction. The provisions
of this bill have largely been in place in New York City since 1986
and have improved auction house practices and the value received by
purchasers.

 PRIOR LEGISLATIVE HISTORY :

2000: S.7536: Consumer Protection.
2002: S.7324: Consumer Protection.
2003-04: S.2523-A Consumer Protection.
2005-06: Assembly Calendar. 2007: Passed Assembly/Senate Rules Cmte.
2007: S.6175A: Rules Committee/A2442A: Passed Assembly
2008: S.6175A: Consumer Protection Committee/A2442A: Passed Assembly

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
This bill will take effect on the sixtieth day after it becomes a law.

2009-S3668 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3668

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 27, 2009
                               ___________

Introduced  by  Sens. FLANAGAN, HANNON, VOLKER -- read twice and ordered
  printed, and when printed to be committed to the Committee on Consumer
  Protection

AN ACT to amend  the  general  business  law,  in  relation  to  auction
  requirements

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative  intent.  The  legislature  declares  that  the
following  provisions  of law are in addition to other provisions of law
and regulations applicable to auctions.
  S 2. The general business law is amended by adding a new section 29 to
read as follows:
  S 29. AUCTION REQUIREMENTS. 1.  THE AUCTIONEER WILL BE HELD  RESPONSI-
BLE  FOR  THE  TRUTH OF ANY STATEMENT CONTAINED IN ANY CATALOGUE, ADVER-
TISEMENT, ANNOUNCEMENT, PRESS RELEASE OR OTHER PUBLIC STATEMENT MADE  BY
THE AUCTIONEER RELATING TO ANY AUCTION.
  2. A. NO PERSONAL PROPERTY MAY BE AUCTIONED EXCEPT PURSUANT TO A WRIT-
TEN  CONTRACT  BETWEEN  THE  CONSIGNOR OR HIS OR HER AGENT OR AUTHORIZED
REPRESENTATIVE AND THE AUCTIONEER, UNLESS AUCTIONED PURSUANT TO AN ORDER
OF A COURT OF COMPETENT JURISDICTION.
  B. EVERY CONTRACT REQUIRED PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION
MUST CONTAIN THE FOLLOWING PROVISIONS:
  (I) ALL FEES, COMMISSIONS AND CHARGES TO BE PAID BY THE  CONSIGNOR  TO
THE AUCTIONEER OR HIS OR HER AGENTS, PRINCIPALS, EMPLOYEES, EMPLOYERS OR
ASSIGNS SHALL:
  (1)  TO THE EXTENT PRACTICABLE, BE ITEMIZED AND SPECIFIED AS TO AMOUNT
(WHICH MAY BE STATED AS A PERCENTAGE OF THE RESERVE PRICE OR  ANY  FINAL
BID), AND
  (2)  IF SUCH ITEMIZATION AND SPECIFICATION AS TO AMOUNT IS NOT PRACTI-
CABLE, BE DESCRIBED WITH SUFFICIENT PARTICULARITY TO INFORM THE  CONSIG-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04810-01-9

S. 3668                             2

NOR  OF  THE NATURE OF THE SERVICES FOR WHICH SUCH FEES, COMMISSIONS AND
CHARGES WILL BE IMPOSED.
  (II) THAT AS OF THE DATE OF THE AUCTION THE CONSIGNOR WARRANTS THAT HE
OR SHE HAS COMPLETE AND LAWFUL RIGHT, TITLE AND INTEREST IN THE PROPERTY
AUCTIONED, AND THAT THE CONSIGNOR SHALL INDEMNIFY THE AUCTIONEER, HIS OR
HER  AGENTS, PRINCIPALS, EMPLOYEES, EMPLOYERS OR ASSIGNS IN THE EVENT OF
ANY DEFECT IN TITLE, AND THAT AN INTENDED BENEFICIARY OF  THIS  WARRANTY
IS THE ULTIMATE PURCHASER AT AUCTION.
  C.  WHERE  ARTICLES  ARE  REFERRED TO BY CATALOGUE OR ADVERTISEMENT AS
HAVING BEEN OBTAINED FROM ANY SPECIFIC PERSON,  PLACE  OR  SOURCE,  SUCH
ARTICLES MUST BE SEPARATELY ENUMERATED AND IDENTIFIED.
  D. IF AN AUCTIONEER OR AUCTION HOUSE HAS ANY INTEREST, DIRECT OR INDI-
RECT,  IN  AN  ARTICLE,  INCLUDING  A GUARANTEED MINIMUM, OTHER THAN THE
SELLING COMMISSION, THE FACT SUCH INTEREST EXISTS MUST BE  DISCLOSED  IN
CONNECTION  WITH ANY DESCRIPTION OF THE ARTICLE OR ARTICLES IN THE CATA-
LOGUE OR ANY OTHER PRINTED MATERIAL PUBLISHED OR DISTRIBUTED IN RELATION
TO THE SALE. SUCH NOTICE MAY BE DENOTED BY A PROMINENT SYMBOL OR  LETTER
WHICH  WILL  REFER  THE  READER  TO  AN EXPLANATION OF THE NATURE OF THE
INTEREST THE SYMBOL  OR  LETTER  DENOTES.  IN  ADDITION,  PRIOR  TO  THE
COMMENCEMENT  OF  THE AUCTION, THE AUCTIONEER SHALL ORALLY ANNOUNCE THAT
THOSE LOTS IN WHICH THE AUCTIONEER  HAS  AN  INTEREST  COVERED  BY  THIS
SUBDIVISION HAVE BEEN DESIGNATED IN THE AUCTION CATALOGUE AND THE SYMBOL
USED TO DENOTE SUCH INTEREST.
  E.  WHERE A CONSIGNOR IS TO RECEIVE A REBATE COMMISSION IN WHOLE OR IN
PART, OR WHERE HE OR SHE WILL BE PERMITTED TO BID UPON AND TO  BUY  BACK
HIS  OR HER OWN ARTICLE AT THE SALE, DISCLOSURE OF SUCH A CONDITION MUST
BE MADE IN CONNECTION WITH ANY DESCRIPTION  OF  THE  ITEM  OR  ITEMS  SO
AFFECTED  IN  THE  CATALOGUE  OR ANY OTHER PRINTED MATERIAL PUBLISHED OR
DISTRIBUTED IN RELATION TO THE SALE. THE EXISTENCE OF SUCH  A  CONDITION
MAY  BE  DENOTED BY A SYMBOL OR LETTER WHICH WILL REFER THE READER TO AN
EXPLANATION OF THE NATURE OF THE INTEREST THE SYMBOL OR LETTER DENOTES.
  F. (I) IF THE CONSIGNOR HAS FIXED A PRICE BELOW WHICH AN ARTICLE  WILL
NOT  BE  SOLD,  THE "RESERVE PRICE", THE FACT THAT THE LOT IS BEING SOLD
SUBJECT TO RESERVE MUST BE DISCLOSED IN CONNECTION WITH THE  DESCRIPTION
OF  ANY  LOT  SO AFFECTED IN THE CATALOGUE OR ANY OTHER PRINTED MATERIAL
PUBLISHED OR DISTRIBUTED IN RELATION TO THE SALE.  THE  EXISTENCE  OF  A
RESERVE  PRICE MAY BE DENOTED BY A SYMBOL OR LETTER WHICH WILL REFER THE
READER TO AN EXPLANATION OF RESERVE PRICE. FOR THE PURPOSE OF PARAGRAPHS
(D),(E) AND (F) OF THIS SUBDIVISION,  ADVERTISEMENTS  IN  NEWSPAPERS  OR
OTHER PERIODICALS SHALL NOT CONSTITUTE PRINTED MATERIAL. WHERE NO PRINT-
ED  MATERIAL  IS  PROVIDED  IN CONNECTION WITH THE AUCTION AN AUCTIONEER
SHALL HAVE AVAILABLE DURING ANY ADVERTISED INSPECTION PERIOD INFORMATION
AS TO WHETHER A PARTICULAR LOT IS TO BE  SOLD  SUBJECT  TO  RESERVE  AND
SHALL ANNOUNCE BEFORE HE OR SHE COMMENCES THE AUCTION THAT SUCH INFORMA-
TION IS AVAILABLE UPON REQUEST.
  (II)  WHEN  A  LOT  IS  NOT SUBJECT TO A RESERVE PRICE, THE AUCTIONEER
SHALL NOT INDICATE IN ANY MANNER THAT THE LOT IS SUBJECT  TO  A  RESERVE
PRICE.
  G.  IN  THE  EVENT  AN  AUCTIONEER  EXTENDS A LOAN TO A PURCHASER, THE
AUCTIONEER SHALL DISCLOSE IN A GENERAL ANNOUNCEMENT AT THE  COMMENCEMENT
OF  THE  AUCTION  THAT BIDDERS MAY BE PARTICIPATING IN THE SALE WHO HAVE
BEEN OFFERED A LOAN BY THE AUCTIONEER. IN ADDITION, THIS DISCLOSURE MUST
ALSO BE MADE ON SIGNS PROMINENTLY DISPLAYED IN THE AUCTION ROOM  AND  AT
THE ENTRANCE THERETO. SUCH SIGNS SHALL INCLUDE THE FOLLOWING DISCLOSURE,
OR CONVEY SUBSTANTIALLY THE SAME MESSAGE:

S. 3668                             3

  "BIDDERS MAY BE PARTICIPATING IN THE SALE WHO HAVE BEEN OFFERED A LOAN
BY THE AUCTIONEER."
  H. THE AUCTIONEER SHALL:
  (I) PROVIDE INFORMATION AS TO THE NUMBER OF JEWELS, APPROXIMATE NUMBER
OF  CARATS,  NUMBER  OF  POINTS  (DIAMOND), PRINCIPAL METAL CONTENT, AND
MANUFACTURER'S NAME, IF KNOWN, FOR ALL ARTICLES  OF  JEWELRY,  INCLUDING
WATCHES.  THE  INFORMATION  REQUIRED BY THIS PARAGRAPH SHALL BE PROVIDED
EITHER IN THE CATALOGUE DESCRIPTIONS OF SUCH ITEMS OR  BY  ATTACHING  TO
EACH SUCH ITEM A TAG OR MARKING CONTAINING THE INFORMATION.
  (II)  ISSUE  OR  CAUSE TO BE ISSUED TO EACH PURCHASER AN INVOICE WHICH
SHALL CONTAIN ALL THE FOLLOWING INFORMATION:
  (1) THE AUCTIONEER'S NAME, BUSINESS ADDRESS AND LICENSE NUMBER;
  (2) THE NAME AND ADDRESS OF THE AUCTIONEER'S EMPLOYER OR PRINCIPAL;
  (3) THE DATE OF SALE;
  (4) THE LOT NUMBER, DESCRIPTION, QUANTITY AND SELLING  PRICE  OF  EACH
LOT;
  (5)  THE  TOTAL  AMOUNT OF PURCHASE WITH A SEPARATE STATEMENT OF SALES
TAX;
  (6) ALL DEPOSITS MADE AGAINST THE PURCHASE PRICE.
  (III) ADVERTISE EACH AUCTION SALE AT LEAST ONCE IN THE SEVEN DAY PERI-
OD IMMEDIATELY PRECEDING THE AUCTION.
  (IV) NOTIFY THE PERSON WHOSE PROPERTY  IS  BEING  AUCTIONED  (AND  ANY
OTHER  PERSON  ENTITLED TO BE NOTIFIED ACCORDING TO LAW) AS TO THE DATE,
PLACE AND TIME OF SALE.
  (V) PERMIT (PRIOR TO THE START OF THE AUCTION) PROSPECTIVE  PURCHASERS
TO INSPECT EACH AND EVERY ARTICLE TO BE OFFERED FOR SALE.
  (VI)  FURNISH  TO  ANY  BUYER,  CONSIGNOR OR OWNER OF AN ARTICLE, UPON
REQUEST, INFORMATION AS TO THE WHEREABOUTS OF THAT  ARTICLE  THAT  COMES
INTO HIS OR HER POSSESSION OR THAT IS SOLD OR OFFERED FOR SALE BY HIM OR
HER.
  (VII)  SEND CHECKS FOR THE NET AMOUNT RECEIVED ON ALL SALES TO PERSONS
ENTITLED TO THE PROCEEDS THEREOF WITHIN FOURTEEN DAYS OF  DATE  OF  SALE
(EXCEPT  AS  OTHERWISE  AGREED  IN WRITING OR OTHERWISE PROVIDED BY LAW)
TOGETHER WITH A COMPLETE DETAILED STATEMENT INCLUDING LOT NUMBER,  QUAN-
TITY,  DESCRIPTION  AND SELLING PRICE OF EACH LOT; TOTAL AMOUNT RECEIVED
ON SALE; AND DISBURSEMENTS LISTING COMMISSION,  COST  OF  ADVERTISEMENT,
LABOR, CHARGES AND ALLOWANCES, AND SUNDRY EXPENSES.
  (VIII) WHEN AN AUCTIONEER HAS A NUMBER OF THE SAME KIND OF ARTICLES TO
BE  SOLD  AND  INTENDS TO DISPOSE OF EACH OF THEM AT THE AMOUNT AT WHICH
THE FIRST IS SOLD, HE OR SHE SHALL MAKE AN ANNOUNCEMENT TO  THAT  EFFECT
PRIOR TO OPENING THE SALE OF THE FIRST ARTICLE.
  I.  IF  AN  AUCTIONEER  MAKES LOANS OR ADVANCES MONEY TO CONSIGNORS OR
PROSPECTIVE PURCHASERS, THIS FACT MUST BE CONSPICUOUSLY DISCLOSED IN THE
AUCTIONEER'S CATALOGUE OR PRINTED MATERIAL. IF THE AUCTIONEER  DOES  NOT
PROVIDE  ANY SUCH PRINTED MATERIAL, HE OR SHE SHALL MAKE THE DISCLOSURE,
EITHER BY CONSPICUOUSLY POSTING A SIGN, OR IN ANOTHER SIMILARLY CONSPIC-
UOUS MANNER, AT THE TIME OF ANY ADVERTISED INSPECTION PERIODS  PRIOR  TO
THE  AUCTIONS. FOR THE PURPOSE OF THIS PARAGRAPH ADVERTISEMENTS IN NEWS-
PAPERS OR OTHER PERIODICALS SHALL NOT CONSTITUTE PRINTED MATERIAL.
  J. EXCEPT TO IMPLEMENT A RESERVE PRICE, AND SUBJECT  THE  REQUIREMENTS
OF  PARAGRAPH B OF SUBDIVISION THREE OF THIS SECTION, NO AUCTIONEER, HIS
OR HER CONSIGNOR, EMPLOYEE, EMPLOYER, ASSIGNEE OR AGENT FOR ANY OF  THEM
MAY  BID  FOR HIS OR HER OWN ACCOUNT AT ANY AUCTION IF ANY OF THEM SHALL
HAVE ACCESS TO INFORMATION NOT OTHERWISE AVAILABLE TO THE PUBLIC REGARD-
ING RESERVES, VALUE OR OTHER MATERIAL FACTS  RELATING  TO  THE  ARTICLES
WHICH  ARE  THE  SUBJECT OF THE AUCTION, UNLESS THEIR STATUS AS A PERSON

S. 3668                             4

WITH INSIDE INFORMATION AND INTENDED PARTICIPATION IS DISCLOSED  IN  THE
AUCTIONEER'S  CATALOGUE  AND ANY PRINTED MATERIAL AND ON SIGNS POSTED AT
THE AUCTION.
  K.  WHEREVER  AN  ESTIMATE  OR  ESTIMATED  VALUE  OF AN ITEM OR LOT IS
PUBLISHED IN A CATALOGUE OR ANY  OTHER  PRINTED  MATERIAL  PUBLISHED  OR
DISTRIBUTED IN RELATION TO AN AUCTION SALE, A GENERAL DESCRIPTION OF THE
ESTIMATE  AND  ITS MEANING AND FUNCTION MUST BE INCLUDED IN SUCH PRINTED
MATERIAL. FOR THE PURPOSE OF THIS PARAGRAPH, ADVERTISEMENTS  IN  NEWSPA-
PERS  OR  OTHER PERIODICALS SHALL NOT CONSTITUTE PRINTED MATERIAL. WHERE
NO PRINTED MATERIAL IS PROVIDED, AND AN ESTIMATE OR ESTIMATED  VALUE  IS
ANNOUNCED  OR  DISSEMINATED  IN ANY MANNER, A GENERAL DESCRIPTION OF THE
ESTIMATE AND ITS MEANING AND FUNCTION MUST BE AVAILABLE FOR DISTRIBUTION
AND ITS AVAILABILITY MUST  BE  ANNOUNCED  AT  THE  COMMENCEMENT  OF  THE
AUCTION.
  L.  IN ANY ADVERTISEMENT INDICATING AN AUCTION SALE DUE TO A BUSINESS'
LOSS OF LEASE OR LIQUIDATION, THE AUCTIONEER MUST INCLUDE  THE  NAME  OF
THE  CONSIGNOR  OR  BUSINESS AUTHORIZING THE AUCTION. IN ANY SALE ADVER-
TISED AS PURSUANT TO A SECURITY AGREEMENT, THE NAME OF THE DEBTOR  SHALL
BE INDICATED CONSPICUOUSLY.
  3.  A.  IF THE RESERVE PRICE IS NOT BID, THE AUCTIONEER MAY WITHDRAW A
LOT FROM SALE. AT THE TIME OF SUCH WITHDRAWAL,  AND  BEFORE  BIDDING  ON
ANOTHER LOT BEGINS, THE AUCTIONEER SHALL ANNOUNCE THAT THE WITHDRAWN LOT
HAS BEEN "PASSED", "WITHDRAWN", "RETURNED TO OWNER" OR "BOUGHT-IN".
  B.  BEFORE BIDDING ON ANY LOT HAS REACHED ITS RESERVE PRICE NO AUCTIO-
NEER MAY MAKE OR PLACE CONSECUTIVE OR SUCCESSIVE BIDS, OR PLACE BIDS  IN
RESPONSE  TO  BIDS  FROM  OTHERS, ON BEHALF OF THE CONSIGNOR, UNLESS THE
FACT THAT THE AUCTIONEER WILL OR MAY BID IN SUCH A MANNER IS CLEARLY AND
CONSPICUOUSLY DISCLOSED IN ANY CATALOGUE AND ANY OTHER PRINTED  MATERIAL
PUBLISHED  OR  DISTRIBUTED IN CONNECTION WITH THE SALE. FOR THE PURPOSES
OF THIS PARAGRAPH ADVERTISEMENTS  IN  NEWSPAPERS  OR  OTHER  PERIODICALS
SHALL NOT CONSTITUTE PRINTED MATERIAL. THIS DISCLOSURE MUST ALSO BE MADE
ON  SIGNS  PROMINENTLY DISPLAYED IN THE AUCTION ROOM AND AT THE ENTRANCE
THERETO, AND MUST BE ANNOUNCED BY THE AUCTIONEER  IMMEDIATELY  PRIOR  TO
THE COMMENCEMENT OF ANY AUCTION.
  THE  SIGN REQUIRED BY THIS PARAGRAPH MUST BE AT LEAST TWELVE INCHES BY
EIGHTEEN INCHES IN DIMENSION WITH LETTERS AT LEAST ONE  INCH  HIGH,  AND
MUST READ AS FOLLOWS, OR CONVEY A SUBSTANTIALLY SIMILAR DISCLOSURE:
  THE  AUCTIONEER MAY OPEN BIDDING ON ANY LOT BY PLACING A BID ON BEHALF
OF THE SELLER. THE AUCTIONEER MAY FURTHER BID ON BEHALF OF  THE  SELLER,
UP  TO  THE  AMOUNT OF THE RESERVE, BY PLACING SUCCESSIVE OR CONSECUTIVE
BIDS FOR A LOT, OR BY PLACING BIDS IN RESPONSE TO OTHER BIDDERS.
  C. AFTER BIDDING HAS REACHED THE RESERVE PRICE OF A LOT:
  (I) THE AUCTIONEER MAY NOT BID ON  BEHALF  OF  THE  CONSIGNOR  OR  THE
AUCTION HOUSE; AND
  (II)  THE  AUCTIONEER MAY ONLY ACCEPT BIDS FROM PERSONS OTHER THAN THE
CONSIGNOR OR THE AUCTION HOUSE EXCEPT ABSENTEE TELEPHONE, ORDER OR OTHER
AGENT'S BIDS;
  (III) THIS PARAGRAPH SHALL NOT APPLY TO AUCTION SALES CONDUCTED PURSU-
ANT TO AN ORDER OF A COURT OF COMPETENT JURISDICTION, INCLUDING AN ORDER
OF A BANKRUPTCY JUDGE OR TRUSTEE, OR A SALE OF SECURED PROPERTY PURSUANT
TO THE UNIFORM COMMERCIAL CODE, OR THE SALE OF PROPERTY WHICH IS SUBJECT
TO A LIEN OR ASSIGNMENT PURSUANT TO THE LAWS OF THE STATE OF NEW YORK.
  D. IN NO EVENT SHALL THE RESERVE PRICE FOR ANY LOT EXCEED THE  MINIMUM
ESTIMATED VALUE OF THE LOT AS PUBLISHED IN ANY CATALOGUE OR OTHER PRINT-
ED MATERIAL DISTRIBUTED BY THE AUCTIONEER.

S. 3668                             5

  4.  A.  AN  AUCTIONEER  MAY NOT DISCLAIM WARRANTY OF TITLE OF ANY ITEM
SOLD AT AUCTION. THE AUCTIONEER SHALL  REIMBURSE  ANY  PURCHASER  IN  AN
AMOUNT  EQUAL  TO THE SUCCESSFUL BID AT AUCTION PLUS ANY BUYER'S COMMIS-
SION PAID IN THE EVENT IT IS  DETERMINED  THAT  THE  PURCHASER  HAS  NOT
ACQUIRED TRANSFERABLE TITLE TO THE ITEM.
  B.  AT  THE AUCTION SALE PREMISES ONLY EXTERIOR SIGNS MAY BE DISPLAYED
ADVERTISING THE AUCTION SALE BUT THE SAME  SHALL  NOT  BE  EXCESSIVE  IN
SIZE.
  C. AN AUCTIONEER MAY NOT:
  (I)  OFFER  MORE  THAN ONE ARTICLE FOR SALE AT ANY ONE TIME UNLESS THE
COMBINING OF ARTICLES OR LOTS IS SO INDICATED PRIOR TO THE INITIAL BID.
  (II) REPRESENT AN ARTICLE TO BE GUARANTEED BY THE MANUFACTURER OR  THE
OWNER UNLESS A MANUFACTURER'S OR OWNER'S GUARANTEE ACCOMPANIES THE ARTI-
CLE.
  (III)  OFFER  AN  ARTICLE  CONTAINED  IN  A  CARTON,  PACKAGE OR OTHER
CONTAINER COMMONLY KNOWN AS A BLIND ARTICLE UNLESS PRIOR TO THE OFFER IT
IS ANNOUNCED THAT THE HIGHEST BIDDER  MAY  REJECT  THE  ARTICLE  IF  NOT
SATISFACTORY  TO HIM OR HER. THIS PROVISION DOES NOT REFER TO AN AUCTION
OF ARTICLES IN BULK WHERE A SAMPLE IS DISPLAYED AND BALANCE OF  ARTICLES
ARE REPRESENTED TO CONFORM TO THE SAMPLE.
  (IV) ACCEPT AS PAYMENT OR EXCHANGE ANY ARTICLE PREVIOUSLY KNOCKED DOWN
OR SOLD TO A SUCCESSFUL BIDDER. THE ARTICLE KNOCKED DOWN OR SOLD MUST BE
DELIVERED  TO  THE  BIDDER  OR,  IF THE AUCTIONEER IS WILLING AND AT THE
BIDDER'S ELECTION, THE PURCHASE PRICE REFUNDED IN FULL. NO OTHER ARTICLE
MAY BE OFFERED TO SAID BIDDER  AS  A  SUBSTITUTE  OR  REPLACEMENT.  SUCH
REFUND  SHALL  TAKE  PLACE WITHIN A REASONABLE TIME OR MAY BE APPLIED AS
PART PAYMENT OR PAYMENT FOR ANY OTHER ARTICLE PURCHASED  AT  AUCTION  BY
THE SAME BIDDER.
  5.  THE  PROVISIONS  OF  THIS  SECTION SHALL BE ENFORCED BY THE COUNTY
OFFICER CHARGED WITH ENFORCEMENT  OF  CONSUMER  PROTECTION  WITHIN  SUCH
COUNTY,  EXCEPT  THAT  IN  THE  CITY OF NEW YORK, BY THE COMMISSIONER OF
CONSUMER AFFAIRS OF SUCH CITY.
  S 3. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

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Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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2009-S3668 (ACTIVE) - Details

2009-S3668 (ACTIVE) - Summary

2009-S3668 (ACTIVE) - Sponsor Memo

2009-S3668 (ACTIVE) - Bill Text download pdf

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Sponsored By

John J. Flanagan

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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co-Sponsors

Kemp Hannon

Dale M. Volker

2009-S3668 (ACTIVE) - Details

2009-S3668 (ACTIVE) - Summary

2009-S3668 (ACTIVE) - Sponsor Memo

2009-S3668 (ACTIVE) - Bill Text download pdf

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