Section Auc 501.02 - Standards of Conduct(a) A licensee shall submit only truthful and correct information in any application or other document filed with or statement made to the board.(b) A licensee shall inform the board of a principal business address to which all official board communications should be directed. The establishment of a business address or the change or abandonment of a business address shall be reported to the board within 30 days.(c) If challenged by any person(s) prior to or after an auction, the auctioneer shall show the identification card with his license number, issued by the board, as evidence of licensure at any auction he is conducting. The auctioneer of record shall at all auctions post conspicuously at registration and check out his or her full name and official license number, the name, address and telephone number of the board of auctioneers, and an 8.5" x 11" copy of his or her auctioneers license as issued by the board.(d) The responsible auctioneer shall pay consignors all sums due them for goods sold at auctions conducted by said auctioneer within 15 calendar days or at some other time mutually agreed upon in writing by both parties, except as follows: (1) A subsequent written agreement signed by both parties may alter a payment schedule initially established between the parties, but a licensee who does not pay in accordance with a payment schedule which was in effect at the time payment was due shall be subject to misconduct sanctions even if the consignor later consents to a modification of the schedule;(2) If a third party claims or disputes the ownership of the goods sold, the monies shall be placed in an escrow account, with an independent escrow agent pending resolution of the claim, and(3) If a third party brings legal action against the auctioneer for payment to the consignor, the monies shall be placed in an escrow account with an independent escrow agent pending resolution of the claim.(e) The responsible auctioneer shall provide to the consignor an accounting of each lot sold at auctions conducted by said auctioneer within 15 calendar days or at some other time mutually agreed upon in writing by both parties. "Lot" means the object or group of objects offered by an auctioneer for one money.(f) All auction advertisements shall include the name and license number, as shown on the license, of the responsible auctioneer who plans to conduct the auction.(g) Except when participating in auctions exempted by RSA 311-B:13, any licensed New Hampshire auctioneer, who, in any manner and to any extent, represents in New Hampshire an auctioneer who is not licensed in New Hampshire, shall meet the following requirements: (1) The New Hampshire licensed auctioneer shall become the responsible auctioneer and shall include his/her own name and license number in all advertisements for such auction; and(2) The New Hampshire licensed auctioneer shall be fully responsible for any representation, act, or failure to act on the part of the auctioneer who is not licensed in New Hampshire; including, but not limited to, providing an accounting, as described in Auc 501.02(d), to consignors and payment of all consignors.(h) Any person attempting to subvert the purpose of RSA 311-B by buying property for auction so as not to be literally selling for another shall be required to comply with the licensing provisions of RSA 311-B:4. Any advertisement of such unlicensed auction shall be prohibited pursuant to RSA 358-G:2(I).(i) The responsible auctioneer listed in auction advertisements shall be physically present at said auction. If the responsible auctioneer cannot, for whatever reason, be present at the auction, another New Hampshire licensed auctioneer shall be designated as the agent of the responsible auctioneer and be present throughout the auction. The responsible auctioneer shall still be the licensee fully responsible for the conduct of the auction. However, the designated agent shall be also held responsible for his own actions at the auction, but this shall not relieve the liability of the responsible auctioneer.(j) Consignor's unsold property shall be returned or made available to the owner of record within 15 calendar days of the completion of the auction, unless otherwise agreed upon by both consignor and the responsible auctioneer, or unless a dispute arises regarding ownership of said property.(k) The term "estate" shall only be used in the heading of an advertisement when the majority of lots or property being offered for sale during the auction is property of a deceased person or persons or property of one or more persons whose decision making is being performed by a guardian or conservator.(l) The responsible auctioneer shall keep such records as to enable reconstruction of an auction in the event of a complaint. Said records shall be kept for a minimum of 2 years.(m) The stated starting bid or stated minimum bids in any public advertisement shall be no less the reserve amount.(n) Any item advertised or conducted as an absolute auction, an auction without reserve, or on any similar basis in which there is no reserve or minimum bid set for the items shall comply with the requirements of Auc 102.01(a).(o) The owner of property being auctioned and any designated person acting on behalf of the owner may only cast a total of one bid on the property. The identity of the owner or the designated person, and the intent to offer a bid on the property, shall be disclosed to all registered bidders at the auction, prior to the property being auctioned. The owner or any designated person shall not bid on property in an absolute auction. An auctioneer shall not conduct an auction in violation of this rule.(p) The owner of property being auctioned may do only one of the following: (1) Give notice that the auction is being conducted without reserve;(2) Give notice that the owner or a designated person may cast one bid on the property as set forth in Auc 501.02(o); or(3) Give notice that the owner reserves the right to reject all bids.(q) In an absolute auction, the owner shall not use any of these 3 techniques. An auctioneer shall not conduct an auction in violation of this rule.(r) For purposes of RSA 358-G:1(II), a bid shall be considered fictitious if the person procuring it has the legal authority to release the bidder from the obligation incurred by his/her bid.(s) Licensees may bid on their own behalf provided that this has been fully disclosed to the bidders and the licensee has the intention to buy the item.(t) If a bid is made 'while the hammer is falling' in acceptance of a prior bid, the auctioneer may reopen the bidding or declare the goods sold under the bid on which the hammer was falling.(u) Regardless of the type of auction, a bidder may always retract his/her bid at any time before an item sells (before the hammer falls). A bidder's retraction shall not revive any previous bid.(v) An auctioneer, at his or her discretion, may accept or refuse bids from anyone who lacks contractual legal capacity such as a minor, an intoxicated person, or someone who is mentally incompetent.(w) An auctioneer may reject or refuse to accept bids that are considered trifling increases over the preceding bid.(x) An auctioneer shall not call an item sold unless he or she has a good faith belief that title to the property will transfer to the successful bidder upon payment of the auction price.(y) Any violation these standard of conduct, or any violation of New Hampshire statutes shall be a violation of the code of ethics established by the board through rulemaking in accordance with RSA 541-A, under RSA 311-B:11(II)(c).N.H. Admin. Code § Auc 501.02
Derived From Volume XXXVII Number 28, Filed July 13, 2017, Proposed by #12201-B, Effective 6/7/2017, Expires 6/7/2027.