Texas Administrative Code Regarding Some Pertinent Provisions For Coin Auctions
RBinTex
Posts: 4,328 ✭
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RBinTex
Posts: 4,328 ✭
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Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Some may find it dry but I find it an interesting read.
(e) Before beginning an auction, a licensee must announce, give notice, display notice and/or disclose:
(1) that the auctioneer conducting the sale is licensed by the department;
(2) the terms and conditions of the sale including whether a buyer's premium will be assessed; and
(3) if the owner, consignor, or agent thereof has reserved the right to bid.
They've already stated that N.P.Gresham is used to buy items in their own auctions which they have the right to do.
The name is LEE!
World Collection
British Collection
German States Collection
Say N.P.Gresham is the underbidder on a lot. Would that make it a shill bid or would it be enough for Heritage to argue that they were making a good faith effort to win the lot?
Clearly under section (e) they have the right to bid on lots in their auctions, but clearly under section (d) they do not have the right to shill bid. How do you determine when a bid is an honest bid and when it is a shill? Either way all this bidding on their own lots seems fishy to me, but I gather it's par for the course with coin auction venues.
SINCE YOU BROUGHT IT UP I'LL GIVE YOU THE COURTESY OF A RESPONSE:
With all due respect. By their own admission they used a false bidder. True, those willing to excuse that breach would argue that that was a procedural violation as opposed to an egregious one and simultaneously ascribe no ill intent.
What is even more troubling (& potentially damaging) is the following:
Let's say for a particular item the bid increments are $100. Say the highest REAL bid from a REAL non-FALSE BIDDER bona fide arms length third party unassociated person (RNF BB FAL T PUP) is $1000. Let's say you then submit your max bid of $2,000. Now what if, WITH FULL KNOWLEDGE OF YOUR MAX, good old FALSE BIDDER puts a bid in of $1,900 & you pay your max (or not too be too greedy puts a bid in of $1,400 & you pay $1,500).
Are you actually telling me that you'd still be happy just because you won the item at or below your max & THAT THIS ACTION WOULD NOT BE CRIMINAL?
I've heard NOTHING indicating such a scenario neither ever existed nor could it have due to whatever consumer safeguards were in place to make sure it didn't happen. Have you?
Greed is an infectious thing and I just do not believe they rained theirs in and didn't take advantage of people in this way. Sorry to be so cynical.
+1
The only question I have is... how would a bidder know if a shill was bid when the potential bidders are unknown by other bidders on Heritage?
I'm sure most auction houses do this to some degree... the proverbial hand got caught in the cookie jar this time.
Steve
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