Is it legal for an Auctioneer to Bid Pursuant to a proxy and also bid for his self. Essentially bidding as two people (2024)

Richmond, CA asked in Contracts and Business Law for California

This was done in California and without the sellers consent.

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Is it legal for an Auctioneer to Bid Pursuant to a proxy and also bid for his self. Essentially bidding as two people (1)

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T. Augustus Claus Is it legal for an Auctioneer to Bid Pursuant to a proxy and also bid for his self. Essentially bidding as two people (2) Lawyers, want to be a Justia Connect Pro too? Learn more ›

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A:In California, the practice of "shill bidding," where the auctioneer or someone related to the seller places bids to artificially inflate the price, is generally considered illegal and could be construed as a form of fraud. However, proxy bidding, where the auctioneer bids on behalf of a registered absentee bidder, is generally allowed if disclosed and consented to. The critical issue here is whether the auctioneer's actions were disclosed and consented to by all relevant parties. If the auctioneer was bidding both for himself and on behalf of another, without proper disclosure and consent, it could raise ethical and potentially legal issues.

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Is it legal for an Auctioneer to Bid Pursuant to a proxy and also bid for his self. Essentially bidding as two people (3)

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James L. Arrasmith Is it legal for an Auctioneer to Bid Pursuant to a proxy and also bid for his self. Essentially bidding as two people (4) Lawyers, want to be a Justia Connect Pro too? Learn more ›

Answered

  • Sacramento, CA
  • Licensed inCalifornia

A:Under California law, an auctioneer typically cannot bid on behalf of a proxy and also bid for themselves during an auction without the seller's consent. Such actions may raise legal and ethical concerns related to potential conflicts of interest and transparency. If the seller did not provide consent and this occurred, it could be a violation of auction regulations and may warrant legal action or a complaint to the appropriate authorities.

1user found this answer helpful

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Is it legal for an Auctioneer to Bid Pursuant to a proxy and also bid for his self. Essentially bidding as two people (2024)
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