Sender: Rare book and manuscripts <EXLIBRIS-L@LISTSERV.INDIANA.EDU>
> > The problem (immorality) is that mere "disclosure" of a "buyer's
premium"
> > does not fully disclose to the consignor how this second fee will
directly
> > and sometimes profoundly reduce the monies that the consignor will
receive
> > from the sale.
>
> I assume that by this same reasoning when Kevin buys a book from a private
> party for, say, $500, he immediately tells that person that he intends to
> sell it for $2,000.
The difference is not trivial . A bookseller who buys a book (from an
individual, another bookseller, or at auction) is not acting as agent for
the seller. The auctioneer IS acting as an agent, and the law imposes strict
fiduciary obligations on any agent.
An auctioneer, like a real estate agent representing a home-owner, must
represent the best interests of the seller. Whoever buys a house from that
seller does not have this obligation. To ignore this huge distinction is
nonsense. Likewise, an agent (whether a real estate agent, a bookseller
buying in behalf of a client, etc) acting for a buyer, has fiduciary
obligations to that buyer.
I have no argument with the profit motives of auctioneers or other
booksellers, nor do I question the profit motives of other honest business
people. I assume competition will ultimately keep things square. Auctioneers
(unless they are selling their own property) do not have a capital
investment in what they are selling, unlike booksellers who must put their
funds at risk by buying the inventory that they sell. When you have capital
at risk, you seek a larger profit margin, as with any business or
investment. But that's a discussion more suited to the "economic 101
discussion listserv."
But let's return to the issue I raised, which is whether an agent should be
compelled to make full disclosure of the fees they charge a consignor for
selling the consignor's property. I think they should because it is
consistent with the agent's fiduciary obligations to the consignor and
promotes competion, which is good business. I did not see anything in your
message that says otherwise.
Kevin
@
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