Recent auctions and a question of ethics / trust.
DesertLizard
Posts: 702 ✭
Getting everyone feedback on recent auction results has been great. I too feel many of the prices some pieces are fetching are nutso. But I also noticed many BM lots went unsold!!
QUESTION: Given the fact many dealers act as "agents" for buyers (collectors,investors) does the dealer have a responsibility to talk down the buyer from making stupid mistakes? Like buying a Sac$ for $7k? Or does the dealer simply give a weak - it's not a good idea - then go do the buy? If that's the case the dealer is simply acting as an order taker and have zero added value, how and why trust / do business with someone like that?
QUESTION: Given the fact many dealers act as "agents" for buyers (collectors,investors) does the dealer have a responsibility to talk down the buyer from making stupid mistakes? Like buying a Sac$ for $7k? Or does the dealer simply give a weak - it's not a good idea - then go do the buy? If that's the case the dealer is simply acting as an order taker and have zero added value, how and why trust / do business with someone like that?
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Comments
Edit: Just realized I misread your post. If the dealer is acting as an agent for the buyer, than yes, he does have an obligation to offer his opinion if he believes the buyer is being stupid. He is supposedly the expert, and if he offers his services as agent than he should provide that expertise.
Originally thought you'd said he was acting as agent for the seller. That's a different situation and my first paragraph would apply in that instance.
Russ, NCNE
TRUTH
That one is too easy.
Russ, NCNE
If I talked someone out of spending 10K on a coin that sold for 15-20K in another year, I would feel folish (even if I still thought I was right and the new price is even worse).
If I, as a newbie with limited knowledge and assuming I had lots of money to spend, were to contract with a dealer I would do so with the explicit expectation that he provide his advice. Otherwise, I would see no reason to use the dealer's services.
OTOH, if it is a sophisticated collector very familiar with their series utilizing the services of the dealer because said collector cannot or does not want to be in attendance at the auction, than I could see some liability on the dealer's part if unsolicited and bad advice is offered and heeded.
Russ, NCNE
1. Servants (aka slaves, employees, etc)
2. Agents (contractor who represents employer)
3. Independent Contractor (consultant)
Each has different responsibilities, different risks, and different exposure to lawsuits.
For a servant, the employer liable for negligent acts in performance of duties. For an agent, an employer is liable for acts binding him. And an employer is not liable for the actions of a contractor.
And if I bought a $10K coin in late 70's that is worth $4k now, I should sue the agent who helped me acquire it?
If an agent talks a potential client/buyer out of a purchase does that mean they can ghet sued if the item goes up in value?
When his nose grows longer? lol..... which means he's got his nose in your face.
Is one way to look at it.
Leo
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
1. Of or relating to a holding of something in trust for another
2. Of or being a trustee or trusteeship
3. Held in trust
4. Of or consisting of fiat money
So as long as the agent who has fiduciary responsibility is responsible and due diligent, they are not liable. And after the dissolved relationship, decisions that were responsible at the time they were made are not actionable.
However, the statute of limitations applies to actionable issues starting from when they were discovered. So if a collector finds today (1/9/2003) that a dealer who had fiduciary responsibility knowingly acquired a counterfeit coin 20 years ago and misrepresented it to their employer (the collector), the statute of limitation clock would begin today to take action.
Neil
<< <i>How can you tell when a coin dealer is lying? >>
Call Benchmark Ventures. Oh, I thought you asked, "Where a coin dealer is lying" ?
First of all, there is no contract, fiduciary relationship, etc. Many dealers act as "agents" [i.e. lookouts] for collectors.
Some of the legal mumbo jumbo expressed here is rather humorous and I guess that's how people get the wrong idea about what is actionable in court and what is not.
Anyway, here is the circumstance. Many moons ago I wanted to buy a rare gold coin. The dealer said bad idea, it was over priced but I did like ever so much. For some odd reason I waited and got over that nice proof liberty eagle. He instead talked me into buying 3 classics flowing $, half, 25c. Needless to say I did very well and he knew his stuff.
I wonder how many dealers have the balls to say no vs. yes to make the sale. I find too many of us seek confirmation of bad ideas vs. the truth. When a dealer agree with everything I say I know I have the wrong guy.
That dealer read you as a serious, well informed collector and buyer and repeat custumer.
Or that coin was from his personal collection and was just a show piece or the coin could have been already spoken for by a regular buyer. But if the coin had some problems then he'll eventually unload it.
But then again, it may have been overpriced but what does that mean, did the dealer pay too much for it?
Leo
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
Same as lawyers, their lips move.