SOURCE
OF WISCONSIN LAW
PRACTICE
AS A REGISTERED AUCTIONEER
GROUNDS
FOR DISCIPLINE
Source
of Wisconsin Law
Q.
What is the primary source of Wisconsin law that governs the regulation
of auctioneers?
A.
Auctioneers are registered by the Department of Regulation and Licensing
and are subject to discipline by the Auctioneer Board pursuant to Chapter
480, Wisconsin Statutes. See also, Chapters RL 120-128 Wisconsin
Administrative Code.
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Practice
as a Registered Auctioneer
Q.
What are the requirements for conducting auctions?
A.
The following provisions apply to the conduct of actions:
(1)
No auctioneer may conduct an auction unless the auctioneer or the auction
company that is managing
the auction has entered into a written contract with each owner or consignor
of goods or real estate that may be sold at the auction. The contract
shall specify the terms and conditions upon which the auctioneer or
auction company accepts the goods or real estate for sale.
(2)
An auctioneer shall comply with all reasonable requests of each owner
or consignor of goods or real estate that may be sold at an auction
that is conducted by the auctioneer and shall conduct the auction in
a manner that ensures that the highest or most favorable offer for the
goods or real estate is accepted.
(3)
Unless otherwise provided by the terms of a contract described under
sub. (1), within 30 days after the sale of goods or real estate at an
auction, the auctioneer who conducts the auction shall do all of the
following:
(a)
Provide to each owner or consignor of goods or real estate that was
sold or attempted to be sold at the auction an accounting of all moneys
due the owner or consignor.
(b)
Pay to each owner or consignor of goods or real estate that was sold
at the auction all moneys due the owner or consignor.
Q.
What are the requirements for advertising auctions?
A.
No person may advertise that an auction will be conducted unless the
advertisement includes all of the following:
(1)
The name of the auctioneer who will conduct the auction and the name
of any auction company that is managing the auction.
(2)
A statement that the auctioneer under sub. (1) is a "registered
Wisconsin auctioneer".
Q.
What are some additional requirements for advertising auctions?
A.
Additional requirements for advertising auctions are contained in ch.
RL 123, Wis. Adm. Code. Sections RL 123.02 and 123.03, Wis. Adm. Code
read as follows:
RL
123.02 False advertising. No registrant may advertise in a manner which
is false, deceptive or misleading.
RL
123.03 Contents of advertising. All advertisements that an auction will
be conducted shall contain the following information:
(1)
The name or trade name of an auctioneer responsible for the auction
conducted pursuant to the contract required under s. 480.14 (1), Stats.,
and the name or trade name of any auction company that is managing the
auction.
(2)
A statement that the auctioneer
is a ‘registered Wisconsin auctioneer' and the state registration number
of the auctioneer.
(3)
A statement of the terms and conditions under which the registrant will
accept payment by buyers at the auction.
(4)
The percentage or other amount of any buyer's fee or surcharge which
is a condition to sale.
Q.
Are auctioneers required to deposit down payments in trust accounts?
A.
Yes. A ll down payments, earnest money deposits or other trust funds
received by an auctioneer or auction company on behalf of the auctioneer's
or auction company's principal or any other person shall be deposited
in a common trust account maintained by the auctioneer or auction company
for that purpose in a bank, savings and loan association or credit union
which is authorized to do business in this state and is designated by
the auctioneer or auction company pending the consummation or termination
of the transaction, except that the money may be paid to one of the
parties pursuant to an agreement between the parties. The name of the
bank, savings and loan association or credit union shall at all times
be registered with the department, along with a letter authorizing the
department to examine and audit the trust account when the department
determines that an examination or audit of the trust account is necessary.
Q.
What are the requirements for maintaining records?
A.
Auctioneers are required to maintain records in accordance with s. 480.18,
Wis. Stats., which reads, in part as follows:
(1)
Unless a longer period of retention is required under sub. (2), for
at least 2 years after an auctioneer conducts an auction, the auctioneer
shall maintain complete and accurate records of the auction, including
the name and address of each owner or consignor of goods or real estate
that was sold or attempted to be sold at the auction, a description
of the goods or real estate that was sold or attempted to be sold at
the auction, the originals or true copies of the contracts described
in s. 480.14 (1) and accounts of all moneys received and disbursed at
or as a result of the auction.
(2)
An auctioneer shall retain the records described in sub. (1) for at
least 2 years after the termination of any litigation related to any
goods or real estate that was sold or attempted to be sold at an auction
conducted by the auctioneer.
(3)
An auctioneer shall, upon reasonable notice, make the records described
in sub. (1) available for inspection and copying by the department or
the board.
Q.
What are some additional requirements for maintaining records?
A.
Refer to Chapter
RL 125, Wis. Adm. Code.
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Grounds
for Discipline
Q.
What are the grounds for the discipline of auctioneers?
A.
The grounds for the discipline of auctioneers are set forth in s. 480.24,
Wis. Stats., which states, in part, the following:
(1)
Subject to the rules promulgated under s. 440.03 (1), the board may
make investigations or conduct hearings to determine whether a violation
of this chapter or any rule promulgated under this chapter has occurred.
The board may require a registrant or an auction company representative
of an auction company that is a registrant to undergo and may consider
the results of one or more physical, mental or professional competency
examinations if the board believes that the results of any of those
examinations may be useful to the board in conducting its investigation.
(2)
Subject to the rules promulgated under s. 440.03 (1), the board may
reprimand a registrant or deny, limit, suspend or revoke a certificate
under this chapter if it finds that the applicant or registrant or an
auction company representative of an auction company that is an applicant
or registrant has done any of the following:
(a)
Made a material misstatement in an application for a certificate or
renewal of a certificate.
(b)
Engaged in conduct while practicing as an auctioneer or as an auction
company which evidences a lack of knowledge or ability to apply professional
principles or skills.
(c)
Subject to ss. 111.321, 111.322 and 111.335, been arrested or convicted
of an offense committed while registered under this chapter.
(d)
Advertised in a manner which is false, deceptive or misleading.
(e)
Advertised, practiced or attempted to practice as an auctioneer or as
an auction company under another person's name.
(f)
Allowed the registrant's name to be used by another person while the
other person was practicing or attempting to practice as an auctioneer
or as an auction company.
(g)
Subject to ss. 111.321, 111.322 and 111.34, practiced as an auctioneer
or as an auction company while the individual's ability to practice
was impaired by alcohol or other drugs.
(h)
Failed to obtain a permit under s. 77.52 (9).
(i)
Failed to submit to a physical, mental or professional competency examination
required under sub. (1) or (3) (a).
(j)
Violated this chapter or any rule promulgated under this chapter.
Q.
What constitutes engaging in "conduct while practicing as an auctioneer
or as an auction company which evidences a lack of knowledge or ability
to apply professional principles or skills".
A.
Conduct evidencing a lack of knowledge or ability to apply professional
principles or skills, within the meaning of s. 480.24 (2) (b), Stats.,
includes, but is not limited to, engaging in or aiding or abetting the
fo ll owing conduct:
(1)
Performing or offering to perform services for which the registrant
is not qualified by education, training or experience.
(2)
Violating a law or rule of any jurisdiction, the circumstances of which
substantially relate to the practice under the registration.
(3)
Advertising an auction as an absolute auction if any item or items are
to be sold with reserve or with minimum bids.
(4)
Engaging in false, fraudulent, deceptive or misleading billing practices.
(5)
Obtaining or attempting to obtain compensation by fraud or deceit.
(6)
Reporting distorted, false or misleading information or making false
statements in practice.
(7)
Discriminating on the basis of age, race, color, sex, religion, creed,
national origin, ancestry, disability or sexual orientation by means
of service provided or denied.
(8)
Knowingly escalating or attempting to escalate bidding through false
bids, shills or through collusion with another.
(9)
Violating or attempting to violate any formal disciplinary order of
the auctioneer board.
(10)
Knowingly providing false information to the board, the department or
their agents.
(11)
Cheating on the registration examination contrary to s. RL 122.04.
(12)
Failing to post written notice at the location where the auction is
to be conducted, prior to the commencement of an auction, of the terms
and conditions under which the registrant will accept payment by buyers.
(13)
If a buyer's fee or surcharge is a condition of sale, failing to post
written notice at the location where the auction is to be conducted,
prior to the commencement of an auction, of the percentage or other
amount of the buyer's fee or surcharge.
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