S T A T E O F N E W Y O R K
________________________________________________________________________
2024
2017-2018 Regular Sessions
I N S E N A T E
January 11, 2017
___________
Introduced by Sen. SQUADRON -- 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.
§ 2. The general business law is amended by adding a new section 29 to
read as follows:
§ 29. REQUIREMENTS FOR AUCTIONS. 1. THE AUCTIONEER WILL BE HELD
RESPONSIBLE FOR THE TRUTH OF ANY STATEMENT CONTAINED IN ANY CATALOGUE,
ADVERTISEMENT, 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-
NOR OF THE NATURE OF THE SERVICES FOR WHICH SUCH FEES, COMMISSIONS AND
CHARGES WILL BE IMPOSED.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04416-01-7
S. 2024 2
(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 THIS PARA-
GRAPH AND PARAGRAPHS D AND E OF THIS SUBDIVISION, ADVERTISEMENTS IN
NEWSPAPERS OR OTHER PERIODICALS SHALL NOT CONSTITUTE PRINTED MATERIAL.
WHERE NO PRINTED 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 INFORMATION 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:
"BIDDERS MAY BE PARTICIPATING IN THE SALE WHO HAVE BEEN OFFERED A LOAN
BY THE AUCTIONEER."
H. THE AUCTIONEER SHALL:
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(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 TO THE REQUIRE-
MENTS OF PARAGRAPH B OF SUBDIVISION THREE OF THIS SECTION, NO AUCTIO-
NEER, 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 REGARDING RESERVES, VALUE OR OTHER MATERIAL FACTS RELATING TO THE
ARTICLES WHICH ARE THE SUBJECT OF THE AUCTION, UNLESS THEIR STATUS AS A
PERSON WITH INSIDE INFORMATION AND INTENDED PARTICIPATION IS DISCLOSED
IN THE AUCTIONEER'S CATALOGUE AND ANY PRINTED MATERIAL AND ON SIGNS
POSTED AT THE AUCTION.
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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.
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-
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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. A. UPON ANY VIOLATION OF THIS SECTION, AN APPLICATION MAY BE MADE
BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW
YORK TO A COURT OR JUSTICE HAVING JURISDICTION TO ISSUE AN INJUNCTION,
AND UPON NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE DAYS, TO ENJOIN
AND RESTRAIN THE CONTINUANCE OF THE VIOLATION. IF IT SHALL APPEAR TO THE
SATISFACTION OF THE COURT OR JUSTICE THAT THE DEFENDANT HAS VIOLATED
THIS SECTION, AN INJUNCTION MAY BE ISSUED BY THE COURT OR JUSTICE,
ENJOINING AND RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF
THAT ANY PERSON HAS, IN FACT, BEEN INJURED OR DAMAGED THEREBY. IN ANY
SUCH PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO THE ATTORNEY GENERAL
AS PROVIDED IN PARAGRAPH SIX OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND DIRECT RESTITU-
TION.
B. WHENEVER THE COURT SHALL DETERMINE THAT A VIOLATION OF THE
PROVISIONS OF THIS SECTION HAS OCCURRED, IT MAY IMPOSE A CIVIL PENALTY
OF NOT MORE THAN ONE THOUSAND DOLLARS FOR EACH VIOLATION. IN CONNECTION
WITH AN APPLICATION MADE UNDER THIS SUBDIVISION, THE ATTORNEY GENERAL IS
AUTHORIZED TO TAKE PROOF AND TO MAKE A DETERMINATION OF THE RELEVANT
FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRACTICE LAW
AND RULES.
C. IN ADDITION TO THE RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION, ANY BUYER INJURED BY A
VIOLATION OF THE PROVISIONS OF THIS SECTION MAY BRING AN ACTION IN HIS
OWN NAME TO ENJOIN SUCH UNLAWFUL PRACTICE, AN ACTION TO RECOVER HIS
ACTUAL DAMAGES OR FIVE HUNDRED DOLLARS, WHICHEVER IS GREATER, OR BOTH
SUCH ACTIONS. THE COURT IN ITS DISCRETION MAY INCREASE THE AWARD OF
DAMAGES TO AN AMOUNT NOT TO EXCEED THREE TIMES THE ACTUAL DAMAGES. THE
COURT MAY AWARD COSTS AND REASONABLE ATTORNEYS FEES TO A PREVAILING
PLAINTIFF.
6. THE PROVISIONS OF THIS SECTION SHALL NOT BE APPLICABLE TO AUCTIONS
HELD AS PART OF A FUNDRAISING EVENT BY AN ENTITY CREATED FOR CHARITABLE
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PURPOSES WITHIN THE MEANING OF PARAGRAPH FOUR OF SUBDIVISION (A) OF
SECTION ELEVEN HUNDRED SIXTEEN OF THE TAX LAW WHERE THE PROCEEDS OF SUCH
FUNDRAISING EVENT BENEFIT SUCH ORGANIZATION.
7. NOTWITHSTANDING THE FOREGOING, AND UNLESS OTHERWISE REQUIRED BY
LAW, IN ANY COUNTY WITH A POPULATION OF FORTY-FIVE THOUSAND OR LESS, NO
WRITTEN CONTRACT SHALL BE REQUIRED WHERE THE REASONABLY ESTIMATED VALUE
OF THE PROPERTY TO BE AUCTIONED IS LESS THAN ONE HUNDRED THOUSAND
DOLLARS.
8. THE PROVISIONS OF THIS SECTION SHALL NOT BE APPLICABLE TO:
A. MOTOR VEHICLE AUCTIONS CONDUCTED UNDER SECTION TWENTY-THREE OF THIS
ARTICLE AND THE VEHICLE AND TRAFFIC LAW;
B. AUCTIONS OF POULTRY AND LIVESTOCK;
C. AUCTIONS OF FARM SUPPLIES, FARM EQUIPMENT, AND FARM REAL ESTATE; OR
D. AUCTION SALES CONDUCTED PURSUANT TO AN ORDER OF A COURT OF COMPE-
TENT 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 PURSU-
ANT TO THE LAWS OF THE STATE OF NEW YORK.
E. THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION, SUBPARAGRAPHS
(I) AND (II) OF PARAGRAPH F OF SUBDIVISION TWO OF THIS SECTION AND OF
PARAGRAPH A OF SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO
AUCTIONS OF THOROUGHBRED HORSES, PROVIDED THAT THE RESULTS OF SUCH
AUCTION, INCLUDING WHETHER OR NOT A RESERVE PRICE WAS MET, ARE PUBLISHED
WITHIN TWENTY-FOUR HOURS.
F. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO AUCTIONS OF VEHI-
CLES OR HIGHWAY TOOLS, MACHINERY OR EQUIPMENT CONDUCTED BY OR ON BEHALF
OF THE FEDERAL GOVERNMENT, OR THE STATE, ITS AGENCIES, BUREAUS, BOARDS,
COMMISSIONS AND AUTHORITIES, OR ANY POLITICAL SUBDIVISION OF THE STATE,
OR THE AGENCIES AND AUTHORITIES OF ANY SUCH SUBDIVISION.
§ 3. Subdivision 3 of section 23 of the general business law is
amended by adding a new paragraph f to read as follows:
F. IN THE EVENT AN AUCTIONEER, AUCTION OR AFFILIATE OFFERS FLOOR PLAN
FINANCING OR 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
FLOOR PLAN FINANCING OR A LOAN BY THE AUCTIONEER, AUCTION OR AFFILIATE
OR WORDS THAT CONVEY SUBSTANTIALLY THE SAME MESSAGE.
§ 4. This act shall take effect on the sixtieth day after it shall
have become a law.
