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Writer's pictureMike Brandly, Auctioneer

Integrity and respect for reasonable expectations?

I’ve seen some interesting things in the auction business … and this might come close to topping them all, so far. This involves the often-misunderstood “tie-bid” issue outside of Kentucky (and the tie-bid situation in Kentucky with no discernible resolution.)

Auctioneer says “Sold!” to a high bidder, when another bidder claims to believe he was the high bidder. The auctioneer reopens the bid (1) keeping the bid between just those two bidders (2) and a third bidder desires to bid and the auctioneer rejects that bid (3).

  1. Unless you are an auctioneer in Kentucky, there are no tie bids, and in reality, given the “mess” in Kentucky law, there are no ties there either as one or the other has to bid more — and what if they refuse? (integrity, reasonable expectations?)

  2. When the bid is reopened legally (with a higher bid made while the hammer is falling) bidding is to be opened for all to bid. (possibly to maximize the seller’s position)

  3. A bidder other than the high bidder and the so-called “tied” bidder desires to bid and is told he can’t since he and all those other bidders already had their chance. (not maximizing the seller’s position)

As we recently noted, if you’re advocating reopening the bid under any and all circumstances and otherwise modifying the UCC § 2-328 with absolutely no regard for good faith, diligence, reasonableness, and care, good luck with that plan. https://mikebrandlyauctioneer.wordpress.com/2022/04/22/variation-by-agreement-not-uniform/.

I’ve even seen suggestions of putting fake bidders in the crowd to pretend to bid in good faith to increase prices. It’s maybe a bit worse than taking fictitious bids in any fashion, and bidders often do take note. https://mikebrandlyauctioneer.wordpress.com/2018/06/18/how-the-auction-industry-lost-at-least-one-bidder/.

It’s worth saying again: As an auctioneer, you should have integrity, respect for reasonable expectations, act in good faith, diligence, reasonableness, and care. Additionally, reckless disregard for the truth is not a good habit either. If you disagree, I’m [not really] anxious to hear your indefensible argument.

To solve this problem, you as an auctioneer should seek out some auctioneer education opportunities, seminars, and as many other classes as you can, and learn more about the merits of good behavior. If you’re not a National Auctioneers Association member, that would be a good start.

Finally, let me admit that I completely understand it — any advice giving you license to do anything you want is seductive: https://mikebrandlyauctioneer.wordpress.com/2022/04/27/that-new-seductive-advice/, but just because you [potentially] can doesn’t mean you should.

Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at Mike Brandly, Auctioneer, Brandly Real Estate & Auction, and formerly at Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, and an Instructor at the National Auctioneers Association’s Designation Academy and Western College of Auctioneering. He has served as faculty at the Certified Auctioneers Institute held at Indiana University and is approved by The Supreme Court of Ohio for attorney education.

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