[rescue] Re: EBay treasure

[ed at the7thbeer.com]

> > accepting the seller made a mistake and taking a consolation
> > prize/keeping a beneficial business relationship open, or taking him to
> > court?
> 
> With small claims, the loser has to pay the court costs.

Yes, but small claims is not final, at least not in California.  You can
appeal and you can get attornies involved (which is starting to become
common, at least in this state, from the judges I've spoken to).  Perhaps
in a different venue this would be a more reliable option.

> 
> >  > 
> > > Now, he did mess up, and could be forced to honor the
> > > deal.  However, I think a fair deal would be to give
> > > you one in exchange for releasing him from the deal.
> > 
> > He did mess up, but that does not force him to honor the deal.  However, I
> > would encourage trying to meet somewhere in the middle, i.e. a free chip
> > or something like that.
> 
> The auctions are legally binding.

Yes and no.  A contract is not an immovable object.  It's a rather fluid
concept, in reality.

The auction led to a contract and in the formation of that contract there
was a unilateral mistake made.  In such a case, a court will look at 4 or
5 factors (in the U.S.). They are:

Whether the mistake concerned a basic assumption on which the contract was
made.  It did, as to the price term.

Whether the mistake had a material effect on the agreed exchange.  It
does.

Whether the seller assumed the risk of mistake.  Does not appear to have.

In addition:

Whether enforcement would be unconscionable, i.e. inherently unfair.  It
most likely would be; or,

Whether the other party (buyer) had *reason to know* of the mistake.  The
archives of this list would provide ample evdience of that.

If the seller can show the first 3 and then either of the last 2, the
court will give them relief.  

Yes, there is a contract.  Yes, there is a way for the seller to get out
of it, legally.  And yes, the seller may very well be able to do that
based on the limited facts known.  Now, if this clown put up the same
chips AGAIN at the same price, and the whole situation happened again,
then you'd have several other actions to pursue against them.  


Sorry Eric, you're incorrect.  When an item is put up for auction, it is
not an offer, but an invitation for offers(bids) from the audience.  See
Uniform Commercial Code Section 2-328.  The "without reserve" generally
applies to whether the seller can withdraw the goods, not whether the
buyers offer is legitimate and binding.  

-ed

> The way auctions works is the seller is making an offer to > sell the to
highest bidder.  Unless they put a reserve price
> on the auction, they are legally obligated to sell to the
> highest bidder at the closing price.