Obligations Arising From Particular TransactionsAuctioneer and Auction Companies

Section § 1812.600

Explanation

If you're an auctioneer or auction company in California, you must have a $20,000 bond from an approved company and file it with the Secretary of State. This bond protects people against any fraudulent or dishonest acts related to your auction business. You can't operate without this bond, and if it's canceled, you must get a new one quickly or stop doing business. Alternatively, you can deposit money instead of a bond. If claims are made against the deposit, they are only approved after a court judgment and are paid out after 240 days. If there's still money left, the process starts over. If you stop doing business, you can get your deposit back after two years, unless a court decides otherwise. If you don't follow these rules, anyone can sue you and win a $1,000 penalty. Successful plaintiffs can also get their legal fees paid. The Secretary of State oversees this process and charges a filing fee for the bond or deposit.

(a)CA Civil Law Code § 1812.600(a) Every auctioneer and auction company shall maintain a bond issued by a surety company admitted to do business in this state. The principal sum of the bond shall be twenty thousand dollars ($20,000). A copy of the bond shall be filed with the Secretary of State.
(b)CA Civil Law Code § 1812.600(b) The bond required by this section shall be in favor of, and payable to, the people of the State of California and shall be for the benefit of any person or persons damaged by any fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the services of the auctioneer or auction company in performance of the auction by the auctioneer or auction company or its agents, representatives, or employees while acting within the scope of their employment.
(c)Copy CA Civil Law Code § 1812.600(c)
(1)Copy CA Civil Law Code § 1812.600(c)(1) No auctioneer or auction company shall conduct any business without having a current surety bond in the amount prescribed by this section and without filing a copy of the bond with the Secretary of State.
(2)CA Civil Law Code § 1812.600(c)(2) Thirty days prior to the cancellation or termination of any surety bond required by this section, the surety shall send a written notice of that cancellation or termination to both the auctioneer or auction company and the Secretary of State, identifying the bond and the date of cancellation or termination.
(3)CA Civil Law Code § 1812.600(c)(3) If any auctioneer or auction company fails to obtain a new bond and file a copy of that bond with the Secretary of State by the effective date of the cancellation or termination of the former bond, the auctioneer or auction company shall cease to conduct any business unless and until that time as a new surety bond is obtained and a copy of that bond is filed with the Secretary of State.
(d)CA Civil Law Code § 1812.600(d) A deposit may be made in lieu of a bond as set forth in Section 995.710 of the Code of Civil Procedure. When a deposit is made in lieu of the bond, the person asserting the claim against the deposit shall establish the claim by furnishing evidence to the Secretary of State of a money judgment entered by a court together with evidence that the claimant is a person described in subdivision (b).
(e)CA Civil Law Code § 1812.600(e) When a claimant has established the claim with the Secretary of State, the Secretary of State shall review and approve the claim and enter the date of approval on the claim. The claim shall be designated an “approved claim.”
(f)CA Civil Law Code § 1812.600(f) When the first claim against a particular deposit has been approved, it shall not be paid until the expiration of a period of 240 days after the date of its approval by the Secretary of State. Subsequent claims that are approved by the Secretary of State within the same 240-day period shall similarly not be paid until the expiration of the 240-day period. Upon expiration of the 240-day period, the Secretary of State shall pay all approved claims from that 240-day period in full unless the deposit is insufficient, in which case each approved claim shall be paid a pro rata share of the deposit.
(g)CA Civil Law Code § 1812.600(g) When the Secretary of State approves the first claim against a particular deposit after the expiration of a 240-day period, the date of approval of that claim shall begin a new 240-day period to which subdivision (f) shall apply with respect to any amount remaining in the deposit.
(h)CA Civil Law Code § 1812.600(h) After a deposit is exhausted, no further claims shall be paid by the Secretary of State. Claimants who have had their claims paid in full or in part pursuant to subdivision (f) or (g) shall not be required to return funds received from the deposit for the benefit of other claimants.
(i)CA Civil Law Code § 1812.600(i) When a deposit has been made in lieu of a bond, the amount of the deposit shall not be subject to attachment, garnishment, or execution with respect to an action or judgment against the auctioneer or auction company, other than as to that amount that is no longer needed or required for the purpose of this section that otherwise would be returned to the auctioneer or auction company by the Secretary of State.
(j)CA Civil Law Code § 1812.600(j) The Secretary of State shall retain a cash deposit for two years from the date the Secretary of State receives written notification from the assignor of the deposit that the assignor has ceased to engage in the business of an auctioneer or auction company or has filed a bond pursuant to subdivision (a), provided that there are no outstanding claims against the deposit. Written notification to the Secretary of State shall include all of the following: (1) name, address, and telephone number of the assignor; (2) name, address, and telephone number of the bank at which the deposit is located; (3) account number of the deposit; and (4) a statement whether the assignor is ceasing to engage in the business of an auctioneer or auction company or has filed a bond with the Secretary of State. The Secretary of State shall forward an acknowledgment of receipt of the written notice to the assignor at the address indicated in the notice, specifying the date of receipt of the written notice and anticipated date of release of the deposit, provided there are no outstanding claims against the deposit.
(k)CA Civil Law Code § 1812.600(k) A judge of a superior court may order the return of the deposit prior to the expiration of two years upon evidence satisfactory to the judge that there are no outstanding claims against the deposit or order the Secretary of State to retain the deposit for a specified period beyond the two years pursuant to subdivision (j) to resolve outstanding claims against the deposit.
(l)CA Civil Law Code § 1812.600(l) If an auctioneer or auction company fails to perform any of the duties specifically imposed upon him or her pursuant to this title, any person may maintain an action for enforcement of those duties or to recover a civil penalty in the amount of one thousand dollars ($1,000), or for both enforcement and recovery.
(m)CA Civil Law Code § 1812.600(m) In any action to enforce these duties or to recover civil penalties, or for both enforcement and recovery, the prevailing plaintiff shall be entitled to reasonable attorney’s fees and costs, in addition to the civil penalties provided under subdivision (l).
(n)CA Civil Law Code § 1812.600(n) Notwithstanding the repeal of Chapter 3.7 (commencing with Section 5700) of Division 3 of the Business and Professions Code by the act adding this chapter, any cash security in lieu of the surety bond formerly required and authorized by former Chapter 3.7 (commencing with Section 5700) of Division 3 of the Business and Professions Code, shall be transferred to, and maintained by, the Secretary of State.
(o)CA Civil Law Code § 1812.600(o) The Secretary of State shall charge and collect a filing fee not to exceed the cost of filing the bond or deposit filed in lieu of a bond as set forth in Section 995.710 of the Code of Civil Procedure.
(p)CA Civil Law Code § 1812.600(p) The Secretary of State shall enforce the provisions of this chapter that govern the filing and maintenance of bonds and deposits in lieu of bonds.
auctioneer bond auction company bond surety company ...

Section § 1812.601

Explanation

This section defines key terms related to the business of auctions and auction companies. An 'advertisement' is any way of promoting auction services, like through print, directories, or media. An 'auction' is a sale where an auctioneer invites offers and accepts the best one; some types like certain vehicle and real estate auctions are excluded. An 'auction company' handles aspects of setting up and managing auctions. An 'auctioneer' is someone who conducts the bidding process. The section also defines 'employee' and 'employer' in a payroll context and 'goods' as items or animals that can be sold. Finally, 'person' includes both individuals and various types of organizations.

(a)CA Civil Law Code § 1812.601(a) “Advertisement” means any of the following:
(1)CA Civil Law Code § 1812.601(a)(1) Any written or printed communication for the purpose of soliciting, describing, or offering to act as an auctioneer or provide auction company services, including any brochure, pamphlet, newspaper, periodical, or publication.
(2)CA Civil Law Code § 1812.601(a)(2) A telephone or other directory listing caused or permitted by an auctioneer or auction company to be published that indicates the offer to practice auctioneering or auction company services.
(3)CA Civil Law Code § 1812.601(a)(3) A radio, television, or similar airwave transmission that solicits or offers the practice of auctioneering or auction company services.
(b)CA Civil Law Code § 1812.601(b) “Auction” means a sale transaction conducted by means of oral or written exchanges, which include exchanges made in person or through electronic media, between an auctioneer and the members of his or her audience, which exchanges consist of a series of invitations for offers for the purchase of goods made by the auctioneer and offers to purchase made by members of the audience and culminate in the acceptance by the auctioneer of the highest or most favorable offer made by a member of the participating audience. However, auction does not include either of the following:
(1)CA Civil Law Code § 1812.601(b)(1) A wholesale motor vehicle auction subject to regulation by the Department of Motor Vehicles.
(2)CA Civil Law Code § 1812.601(b)(2) A sale of real estate or a sale in any sequence of real estate with personal property or fixtures or both in a unified sale pursuant to subparagraph (B) of paragraph (1) of subdivision (a) of Section 9604 of the Commercial Code.
(c)CA Civil Law Code § 1812.601(c) “Auction company” means any person who arranges, manages, sponsors, advertises, accounts for the proceeds of, or carries out auction sales at locations, including, but not limited to, any fixed location, including an auction barn, gallery place of business, sale barn, sale yard, sale pavilion, and the contiguous surroundings of each.
(d)CA Civil Law Code § 1812.601(d) “Auctioneer” means any individual who is engaged in, or who by advertising or otherwise holds himself or herself out as being available to engage in, the calling for, the recognition of, and the acceptance of, offers for the purchase of goods at an auction.
(e)CA Civil Law Code § 1812.601(e) “Employee” means an individual who works for an employer, is listed on the employer’s payroll records, and is under the employer’s control.
(f)CA Civil Law Code § 1812.601(f) “Employer” means a person who employs an individual for wages or salary, lists the individual on the person’s payroll records, and withholds legally required deductions and contributions.
(g)CA Civil Law Code § 1812.601(g) “Goods” means any goods, wares, chattels, merchandise, or other personal property, including domestic animals and farm products.
(h)CA Civil Law Code § 1812.601(h) “Person” means an individual, corporation, partnership, trust, including a business trust, firm, association, organization, or any other form of business enterprise.
advertisement auctioneer auction company ...

Section § 1812.602

Explanation

This law allows someone to ask the court to stop a person from doing something illegal under this specific set of rules. They can request an injunction, which is a legal way to force someone to stop doing something harmful or illegal. The process follows certain rules but doesn't require a bond, which is usually a kind of legal promise backed by money in case the court's decision causes harm.

The superior court for the county in which any person has engaged or is about to engage in any act that constitutes a violation of this title may, upon a petition filed by any person, issue an injunction or other appropriate order restraining the violative conduct. Proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that no undertaking shall be required.
superior court injunction violative conduct ...

Section § 1812.603

Explanation

If someone breaks the law covered in this section, the local superior court can make them pay back anyone who was harmed because of their actions. If the court issues an order, it might also require the violator to compensate the person who filed the complaint for any costs related to investigating the issue. These actions are on top of any other legal actions that can be taken under other laws.

(a)CA Civil Law Code § 1812.603(a) The superior court for the county in which any person has engaged in any act that constitutes a violation of this title may, upon a petition filed by any person, order the person who committed the violation to make restitution to any person injured as a result of the violation.
(b)CA Civil Law Code § 1812.603(b) The court may order any person against whom an injunction or restraining order pursuant to subdivision (a), or an order requiring restitution pursuant to subdivision (b), is directed, to reimburse the petitioner for expenses incurred in the investigation related to its petition.
(c)CA Civil Law Code § 1812.603(c) The remedies set forth in this section are in addition to, and not a limitation on, the authority provided for in any other section of this code.
superior court violation restitution ...

Section § 1812.604

Explanation

If someone breaks the rules in this section, they could face a misdemeanor charge, which might mean a fine up to $1,000, up to a year in county jail, or both. If convicted of such a crime, especially if it relates to being an auctioneer, the court might stop the person from working as an auctioneer in California and will inform the Secretary of State.

Except as otherwise provided in this title, any person who violates any provision of this title is guilty of a misdemeanor, which offense is punishable by a fine not exceeding one thousand dollars ($1,000), or by imprisonment in a county jail for not more than one year, or by both that fine and imprisonment. In addition, upon a conviction of any violation of this chapter, or of any crime related to the conduct of an auctioneer, the court may issue an injunction and prohibit the convicted person from acting as an auctioneer or an auction company in this state, in which case the court shall inform the Secretary of State of that action.
misdemeanor fine imprisonment ...

Section § 1812.605

Explanation

This section outlines the rules that auctioneers and auction companies must follow during auctions. They have to obey the instructions of the goods' owner or consignor, ensure they sell for the highest or most favorable offer unless exceptions apply, accurately describe the goods, and comply with all state laws related to auctioneering.

In conducting the business of auctioneering, each auctioneer and auction company, and the company’s owners, partners, officers, agents, and employees, shall do all of the following:
(a)CA Civil Law Code § 1812.605(a) Follow all lawful requests of the owner or consignor of the goods being sold at auction with regard to the sale of those goods.
(b)CA Civil Law Code § 1812.605(b) Perform his or her duties so that the highest or most favorable offer made by a member of his or her audience is accepted, except to the extent that any item or sale is offered with reserve or subject to confirmation.
(c)CA Civil Law Code § 1812.605(c) Truthfully represent the goods to be auctioned.
(d)CA Civil Law Code § 1812.605(d) Otherwise perform his or her duties in accordance with the laws of this state.
auctioneer duties auction company rules owner requests ...

Section § 1812.606

Explanation

This law states that an auctioneer who owns their own auction company or an auction company, along with its owners, partners, and officers, is responsible for any wrongdoing by an auctioneer or employee during an auction. Additionally, an auctioneer working for a company is responsible for their own violations. It's against the law for any auctioneer or company's leadership to knowingly allow or direct any violations to occur.

Every auctioneer who operates his or her own auction company as a sole proprietor, and every auction company, together with its owners, partners, and officers, that employs an auctioneer, shall be responsible for all violations committed by the auctioneer or by any company employee in the conduct of auction business. An auctioneer who is employed by an auctioneer or auction company shall be responsible for all violations committed by him or her in the conduct of auction business.
It is a violation of this title for any auctioneer or auction company, or the company’s owners, partners, and officers, to direct or knowingly permit any violation of this title by any auctioneer employed by or under contract with that auctioneer or auction company, or by any owner, partner, officer, agent, or employee of the auction company.
auctioneer responsibility auction company liability sole proprietor auctioneer ...

Section § 1812.607

Explanation

This law lays out the responsibilities of auction companies and auctioneers in California. They must include specific information in auction ads and display a sign with legal compliance details at the auction entrance. Terms of sale must be shared with the audience, and any changes announced before the sale. Address, officer, or business name changes must be reported to the Secretary of State within 30 days. Auctioneers are required to keep detailed records for two years and provide transaction accounts to goods owners or consignors 30 days after a sale. Payments must also be made within 30 days unless legally delayed. Client funds cannot be mixed with personal accounts, and any liens must be disclosed before sale. Buyers who made no purchase must have their deposits returned within two days, and any excess deposit must be refunded within 30 days unless delayed by legal issues. Violations result in fines ranging from $50 to $2,000 depending on the infraction and repetition.

Every auction company and auctioneer shall do all of the following:
(a)CA Civil Law Code § 1812.607(a) Disclose his or her name, trade or business name, telephone number, and bond number in all advertising of auctions. A first violation of this subdivision is an infraction subject to a fine of fifty dollars ($50); a second violation is subject to a fine of seventy-five dollars ($75); and a third or subsequent violation is subject to a fine of one hundred dollars ($100). This section shall not apply to business cards, business stationery, or to any advertisement that does not specify an auction date.
(b)CA Civil Law Code § 1812.607(b) Post a sign, the dimensions of which shall be at least 18 inches by 24 inches, at the main entrance to each auction, stating that the auction is being conducted in compliance with Section 2328 of the Commercial Code, Section 535 of the Penal Code, and the provisions of the California Civil Code. A first violation of this subdivision is an infraction subject to a fine of fifty dollars ($50); a second violation is subject to a fine of seventy-five dollars ($75); and a third or subsequent violation is subject to a fine of one hundred dollars ($100).
(c)CA Civil Law Code § 1812.607(c) Post or distribute to the audience the terms, conditions, restrictions, and procedures whereby goods will be sold at the auction, and announce any changes to those terms, conditions, restrictions, and procedures prior to the beginning of the auction sale. A first violation of this subdivision is an infraction subject to a fine of fifty dollars ($50); a second violation is subject to a fine of one hundred dollars ($100); and a third or subsequent violation is subject to a fine of two hundred fifty dollars ($250).
(d)CA Civil Law Code § 1812.607(d) Notify the Secretary of State of any change in address of record within 30 days of the change. A violation of this subdivision is an infraction subject to a fine of fifty dollars ($50).
(e)CA Civil Law Code § 1812.607(e) Notify the Secretary of State of any change in the officers of a corporate license within 30 days of the change. A violation of this subdivision is an infraction subject to a fine of fifty dollars ($50).
(f)CA Civil Law Code § 1812.607(f) Notify the Secretary of State of any change in the business or trade name of the auctioneer or auction company within 30 days of the change. A violation of this subdivision is an infraction subject to a fine of fifty dollars ($50).
(g)CA Civil Law Code § 1812.607(g) Keep and maintain, at the auctioneer’s or auction company’s address of record, complete and correct records and accounts pertaining to the auctioneer’s or auction company’s activity for a period of not less than two years. The records shall include the name and address of the owner or consignor and of any buyer of goods at any auction sale engaged in or conducted by the auctioneer or auction company, a description of the goods, the terms and conditions of the acceptance and sale of the goods, all written contracts with owners and consignors, and accounts of all moneys received and paid out, whether on the auctioneer’s or auction company’s own behalf or as agent, as a result of those activities. A first violation of this subdivision is a misdemeanor subject to a fine of five hundred dollars ($500); and a second or subsequent violation is subject to a fine of one thousand dollars ($1,000).
(h)CA Civil Law Code § 1812.607(h) Within 30 working days after the sale transaction, provide, or cause to be provided, an account to the owner or consignor of all goods that are the subject of an auction engaged in or conducted by the auctioneer or auction company. A first violation of this subdivision is a misdemeanor subject to a fine of five hundred dollars ($500); and a second or subsequent violation is subject to a fine of one thousand dollars ($1,000).
(i)CA Civil Law Code § 1812.607(i) Within 30 working days after a sale transaction of goods, pay or cause to be paid all moneys and proceeds due to the owner or the consignor of all goods that were the subject of an auction engaged in or conducted by the auctioneer or auction company, unless delay is compelled by legal proceedings or the inability of the auctioneer or auction company, through no fault of his or her own, to transfer title to the goods or to comply with any provision of this chapter, the Commercial Code, or the Code of Civil Procedure, or with any other applicable provision of law. A first violation of this subdivision is a misdemeanor subject to a fine of one thousand dollars ($1,000); a second violation is subject to a fine of one thousand five hundred dollars ($1,500); and a third or subsequent violation is subject to a fine of two thousand dollars ($2,000).
(j)CA Civil Law Code § 1812.607(j) Maintain the funds of all owners, consignors, buyers, and other clients and customers separate from his or her personal funds and accounts. A violation of this subdivision is an infraction subject to a fine of two hundred fifty dollars ($250).
(k)CA Civil Law Code § 1812.607(k) Immediately prior to offering any item for sale, disclose to the audience the existence and amount of any liens or other encumbrances on the item, unless the item is sold as free and clear. For the purposes of this subdivision, an item is “free and clear” if all liens and encumbrances on the item are to be paid prior to the transfer of title. A violation of this subdivision is an infraction subject to a fine of two hundred fifty dollars ($250) in addition to the requirement that the buyer be refunded, upon demand, the amount paid for any item that is the subject of the violation.
(l)CA Civil Law Code § 1812.607(l) Within two working days after an auction sale, return the blank check or deposit of each buyer who purchased no goods at the sale. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250).
(m)CA Civil Law Code § 1812.607(m) Within 30 working days of any auction sale, refund that portion of the deposit of each buyer that exceeds the cost of the goods purchased, unless delay is compelled by legal proceedings or the inability of the auctioneer or auction company, through no fault of his or her own, to transfer title to the goods or to comply with any provision of this chapter, the Commercial Code, or the Code of Civil Procedure, or with other applicable provisions of law, or unless the buyer violated the terms of a written agreement that he or she take possession of purchased goods within a specified period of time. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250).
auctioneer responsibilities advertising disclosures signage requirements ...

Section § 1812.608

Explanation

This law outlines what is and isn't allowed for auctioneers and auction companies. Firstly, you can't break related laws or help someone else do it, and lying through ads or statements is also a no-no. Before selling items, auctioneers must have a written contract with the owner, detailing things like who handles advertising costs, auction dates, and items' insurance. Changes to such contracts must be documented. Auctioneers are also forbidden from fake bidding, must disclose any seller's bids, honestly represent items, and have a valid seller’s permit if sales tax applies.

In addition to other requirements and prohibitions of this title, it is a violation of this title for any person to do any of the following:
(a)CA Civil Law Code § 1812.608(a) Fail to comply with any provision of this code, or with any provision of the Vehicle Code, the Commercial Code, any regulation of the Secretary of State, the Code of Civil Procedure, the Penal Code, or any law administered by the State Board of Equalization, relating to the auctioneering business, including, but not limited to, sales and the transfer of title of goods.
(b)CA Civil Law Code § 1812.608(b) Aid or abet the activity of any other person that violates any provision of this title. A violation of this subdivision is a misdemeanor subject to a fine of one thousand dollars ($1,000).
(c)CA Civil Law Code § 1812.608(c) Place or use any misleading or untruthful advertising or statements or make any substantial misrepresentation in conducting auctioneering business. A first violation of this subdivision is a misdemeanor subject to a fine of five hundred dollars ($500); and a second or subsequent violation is subject to a fine of one thousand dollars ($1,000).
(d)CA Civil Law Code § 1812.608(d) Sell goods at auction before the auctioneer or auction company involved has first entered into a written contract with the owner or consignor of the goods, which contract sets forth the terms and conditions upon which the auctioneer or auction company accepts the goods for sale. The written contract shall include all of the following:
(1)CA Civil Law Code § 1812.608(d)(1) The auctioneer’s or auction company’s name, trade or business name, business address, and business telephone number.
(2)CA Civil Law Code § 1812.608(d)(2) An inventory of the item or items to be sold at auction.
(3)CA Civil Law Code § 1812.608(d)(3) A description of the services to be provided and the agreed consideration for the services, which description shall explicitly state which party shall be responsible for advertising and other expenses.
(4)CA Civil Law Code § 1812.608(d)(4) The approximate date or dates when the item or items will be sold at auction.
(5)CA Civil Law Code § 1812.608(d)(5) A statement as to which party shall be responsible for insuring the item or items against loss by theft, fire, or other means.
(6)CA Civil Law Code § 1812.608(d)(6) A disclosure that the auctioneer or auction company has a bond on file with the Secretary of State. A first violation of this subdivision is an infraction subject to a fine of two hundred fifty dollars ($250); a second violation is subject to a fine of five hundred dollars ($500); and a third or subsequent violation is subject to a fine of one thousand dollars ($1,000).
(e)CA Civil Law Code § 1812.608(e) Sell goods at auction before the auctioneer or auction company involved has first entered into a written contract with the auctioneer who is to conduct the auction. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250).
(f)CA Civil Law Code § 1812.608(f) Fail to reduce to writing all amendments or addenda to any written contract with an owner or consignor or an auctioneer. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250).
(g)CA Civil Law Code § 1812.608(g) Fail to abide by the terms of any written contract required by this section. A first violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100); and a second or subsequent violation is subject to a fine of two hundred fifty dollars ($250).
(h)CA Civil Law Code § 1812.608(h) Cause or allow any person to bid at a sale for the sole purpose of increasing the bid on any item or items being sold by the auctioneer, except as authorized by Section 2328 of the Commercial Code or by this title. A violation of this subdivision includes, but is not limited to, either of the following:
(1)CA Civil Law Code § 1812.608(h)(1) Stating any increased bid greater than that offered by the last highest bidder when, in fact, no person has made such a bid.
(2)CA Civil Law Code § 1812.608(h)(2) Allowing the owner, consignor, or agent thereof, of any item or items to bid on the item or items, without disclosing to the audience that the owner, consignor, or agent thereof has reserved the right to so bid.
A violation of this subdivision is an infraction subject to a fine of one hundred dollars ($100).
(i)CA Civil Law Code § 1812.608(i) Knowingly misrepresent the nature of any item or items to be sold at auction, including, but not limited to, age, authenticity, value, condition, or origin. A violation of this subdivision is an infraction subject to a fine of two hundred fifty dollars ($250). In addition, it shall be required that the buyer of the misrepresented item be refunded the purchase price of the item or items within 24 hours of return to the auctioneer or auction company of the item by the buyer, provided that the item is returned within five days after the date of the auction sale.
(j)CA Civil Law Code § 1812.608(j) Misrepresent the terms, conditions, restrictions, or procedures under which goods will be sold at auction. A violation of this subdivision is an infraction subject to a fine of seventy-five dollars ($75).
(k)CA Civil Law Code § 1812.608(k) Sell any item subject to sales tax without possessing a valid and unrevoked seller’s permit from the State Board of Equalization. A violation of this subdivision is an infraction subject to a fine of five hundred dollars ($500).
auctioneering violations misleading advertising written contracts ...

Section § 1812.609

Explanation

You can't waive any rules in this part of the law, and trying to do so won't hold up in court because it's against public policy.

Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable.
waiver void unenforceable ...

Section § 1812.610

Explanation

This law outlines rules for auctioneers during real estate auctions, including online ones. Auctioneers can't falsely claim a higher bid has been made unless authorized to place a bid on the seller's behalf, provided everyone at the auction is informed and it's clear that the bid won't lead to a sale. For online auctions, the necessary notices must be clearly visible and easily accessible on the auction platform, using hyperlinks, icons, or text links that stand out to users.

(a)CA Civil Law Code § 1812.610(a) Notwithstanding Section 1812.601, for purposes of this section, an auction includes the sale of real property and an “auctioneer” means any individual who is engaged in, or who by advertising or otherwise holds himself or herself out as being available to engage in, the calling for, the recognition of, and the acceptance of, offers for the purchase of real property at an auction.
(b)CA Civil Law Code § 1812.610(b) An auctioneer shall not state at an auction that an increased bid greater than that offered by the last highest bidder has been made when, in fact, no person has made an increased bid. Notwithstanding the foregoing, an auctioneer or another authorized person may place a bid on the seller’s behalf during an auction of real property that would not result in a sale of the real property, if both of the following are true:
(1)CA Civil Law Code § 1812.610(b)(1) Notice is given to all auction participants, including all other bidders, that liberty for that type of bidding is reserved and that type of bid will not result in the sale of the real property.
(2)CA Civil Law Code § 1812.610(b)(2) The person placing that type of bid contemporaneously discloses to all auction participants, including all other bidders, that the particular bid has been placed on behalf of the seller.
(c)CA Civil Law Code § 1812.610(c) For the purpose of the conduct of online auctions of real property, “notice” means a statement of the information required to be given under paragraph (1) of subdivision (b) within the end user license agreement, terms of service, or equivalent policy posted on, or provided by, the operator of an Internet Web site, online service, online application, or mobile application, and by conspicuously posting the information required to be given under paragraph (1) of subdivision (b) in any of the following ways:
(1)CA Civil Law Code § 1812.610(c)(1) Upon the Internet Web page or its equivalent through which a user directly interacts with the site, service, or application during the online auction.
(2)CA Civil Law Code § 1812.610(c)(2) With an icon that hyperlinks to an Internet Web page or its equivalent upon which the required information is posted, if the icon is located on the Internet Web page or its equivalent through which a user directly interacts with the site, service, or application during the online auction. The icon shall use a color that contrasts with the background color of the Internet Web page or is otherwise readily distinguishable.
(3)CA Civil Law Code § 1812.610(c)(3) With a text link that hyperlinks to an Internet Web page or its equivalent upon which the required information is posted, if the text link is located on the Internet Web page or its equivalent through which a user directly interacts with the site, service, or application during the online auction. The text link shall be written in capital letters that are in larger type than the surrounding text, or shall be written in contrasting type, font, or color to the surrounding text of the same size, or shall be set off from the surrounding text of the same size by symbols or other marks that call attention to the language.
(4)CA Civil Law Code § 1812.610(c)(4) With any other functional hyperlink or its equivalent that is displayed on the site, service, or application through which a user directly interacts with the site, service, or application during the online auction so that a reasonable person would notice it and understand it to hyperlink to the required information.
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