Legal Question in Business Law in California

internet auction contract default and potential fraud.

I recently was the successful bidder on two automobiles at a web auction. The cars were sold at absolute auction, without reserve.The lots were posted by a site administator of the auction site for a broker/friend of his. After conclusion of the auction, the person who had posted the items for the broker said he could not produce the items stating he had made a mistake by not posting the reserves for these cars,and he did not own the cars he was auctioning.I demanded performance since I had bid in good faith and complied with the terms of the sale.The cars are worth 16K, my bids total $4.7K.These were independent lots sold on two separate days by a site that specializes in auctions of classic cars and parts in southern California.I have printed documentation of the awards.Is this civil or criminal and do I have a case for specific performance?? Who is liable. the site or the broker for posting items he did not own?? HELP!!!


Asked on 11/03/99, 2:12 am

2 Answers from Attorneys
John Hayes The John Hayes Law Offices

Re: internet auction contract default and potential fraud.

You would seek remedies in a civil lawsuit for non performance. There are arguments for jurisdiction in your county as well as the sellers. However, I think that you would win the jurisdiction. You have a Breach of Contract cause of action and you may also have a Fraud cause of action if it can be prooven that the seller never intended to sell the vehicles in the first place. Just because he is mad that he has to sell to you for less than the cars worth doesn't mean he can cancel the deal. I would be happy to discuss this matter with you in more detail so that I can determine whether or not you are entitled to punitive damages under the Fraud Cause of Action. I can be reached toll free at 888-563-8529. I do a lot of work with out-of-town clients through the use of the internet so that shouldn't be a problem. I look forward to speaking with you about your rights as a consumer.

John Hayes

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Answered on 11/04/99, 2:55 pm
Gregory Brittain Gregory W. Brittain, Attorney at Law

Re: internet auction contract default and potential fraud.

The site is probably not liable. The seller probably is, possibly for specific performance. It may also be a criminal matter. I heard on NPR today someone was sentenced to 14 months in Federal prison for not delivering items he sold through eBay. I doubt the authorities will prosecute because seller has an arguable claim for rescission based on mistake. The prosecutor will probably say it is a civil matter.

Jurisdiction and where you can sue are potentially important questions. Where does the seller live?

You will probably not be able to recover attorney fees unless there is a contract with an attorney fees clause. The attorney fees for each side could be more than you're fighting over.

This reply is a courtesy and does not create an attorney client relationship.

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Answered on 11/03/99, 3:48 pm


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