Auction Rules

Question 1

Which rules of the CPA apply to auctions

Answer 1

Rules 18 to 33

Question 2

Which section must be read with the auction Rules?

Answer 2

Section 45(6) of the CPA

Question 3

Which rule states that these Rules apply to all auctions?

Answer 3

Rule 18(3)

Question 4

Which auctions are excluded from these rules?

Answer 4

1. Transactions concluded under a registered stock exchange
2. An auction where the goods for sale have been donated for sale at an auction and the proceeds of the auction are for a bona fide religious, educational, cultural, welfare, social or sports organisation

Question 5

What is the gist of Rule 18?

Answer 5

Introduction, definitions and application of auction rules

Question 6

What is the gist of Rule 19?

Answer 6

Mandatory advertising of auctions

Question 7

What is the gist of Rule 20?

Answer 7

General advertising rules

Question 8

What is the gist of Rule 21?

Answer 8

Rules of auction

Question 9

What is the gist of Rule 22?

Answer 9

Responsibility for consumer’s property

Question 10

What is the gist of Rule 23?

Answer 10

Disqualification to conduct an auction

Question 11

What is the gist of Rule 24?

Answer 11

Prohibited behaviour

Question 12

What is the fist of Rule 26?

Answer 12

Bidder’s record

Question 13

What is the fist of Rule 27?

Answer 13

Ownership

Question 14

What is the fist of Rule 28?

Answer 14

Bidding

Question 15

What is the fist of Rule 29?

Answer 15

Mock auction

Question 16

What is the fist of Rule 30?

Answer 16

Internet or electronic auctions

Question 17

What is the fist of Rule 31?

Answer 17

Records

Question 18

What is the fist of Rule 32?

Answer 18

Motor vehicle auctions

Question 19

What is the fist of Rule 33?

Answer 19

Livestock, game and livestock auctions

Question 20

What is required before an item can be sold on auction?

Answer 20

The item must first be advertised for a reasonable enough time that the public had become aware of the auction - Rule 19(1)

Question 21

What is the time period that movable property must be advertised?

Answer 21

At least 24 hours

Question 22

What is the time period that immovable property must be advertised?

Answer 22

At least 5 business days

Question 23

If goods are sold by execution or by court order, what must be done?

Answer 23

The fact that it is sold in execution or by court order must be stated

Question 24

What are the requirements for advertising ito Rule20(1)?

Answer 24

All advertising must be -

• Accurate
• Provide sufficient information for the consumer to
• • understand that it relates to an auction
• • be able to find the place where the auction is to be held

Question 25

What are the advertising requirements ito Rule20(2)?

Answer 25

Advertising must be -

• In a legible format or size
• Contain a reference to these regulations (with URL to copy of rules)
• State date, place and time of auction
• State name of auctioneer and auction house
• State where the rules of auction can be found
• State the particulars of the goods on auction
• State that the auction will be held over a number of days (if applicable)
• Disclose as accurately a possible the total costs of advertising and conducting the auction
• If applicable, state that sale by auction is subject to -
• • reserved or upset price
• • a right to bid obo owner or auctioneer
• • contain reminder that all bidders must register

Question 26

What are the requirements for an auction to be as a ‘sale in execution’?

Answer 26

1. At least 75% of the goods must be sold pursuant to a court order
2. The lots were clearly not purchased for purpose of resale at auction
3. The advert contains an explanation of the court order

Question 27

The rules of auction may not …

Answer 27

1. Exclude liability iro inaccurate information provided in the advertising of the auction
2. Exclude liability iro the rules of auction not meeting the reqs of these regulations
3. Contain any qualification, reservation or diminution of the requirements of these regulations unless expressly provided for.

Question 28

What is an auctioneer’s liability iro the Rules ito Rule 21?

Answer 28

The auctioneer is personally accountable and liable for the contents of the rules of auction applicable to a specific auction