10 ways auction professionals violate licensing laws

Darron Meares, CAI, BAS, MPPA, presented “The Top 10 Ways to be Disciplined” on behalf of the National Auctioneers License Law Officials Association (NALLOA) on July 19 during Conference and Show in Spokane, Wash.

Auctioneers can find themselves in hot water from state licensing boards if they make these auction law violations:

•    Using money in an escrow account for personal use, or, as Meares describes it, commingling of restricted funds
•    Misrepresenting what is being sold; for example, not mentioning that a car had major water damage
•    Advertising an auction incorrectly, such as marketing an auction as absolute when it is not
•    Allowing unlicensed bid callers to sell items
•    Conducting an auction without a license
•    Letting a license lapse
•    Failing to meet continuing education requirements
•    Violating the Uniform Commercial Code, which prevents Auctioneers from doing things such as opening up tie bids and letting sellers bid on their own items
•    Using the term “absolute” incorrectly, as Meares says he has seen instances where auctions are advertised as absolute over a certain price point or only some items in a sale are without reserve in an auction advertised as absolute
•    Not providing buyers with full disclosure

The group’s presentation provided two hours of continuing education credit. NALLOA’s business meeting followed the session.

NALLOA is a membership organization comprised of 18 licensing board members and 52 associate members. It serves to improve reciprocity and make it easier for Auctioneers to obtain licensing.

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