Fair Trading Act 1986

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14A When vendor bids are misrepresentations

(1)

This section applies where property (being goods, services, or an interest in land) is offered for sale—

(a)

by auction (as defined in section 36X); or

(b)

by any other bidding process in which all bids are disclosed.

(2)

The vendor of the property makes a false or misleading representation with respect to the price of the property if the vendor, or any agent acting on behalf of the vendor, makes a vendor bid for the property.

(3)

However, subsection (2) does not apply if—

(a)

there is a reserve price for the property; and

(b)

the bid is made before the reserve price is reached and is clearly identified as a vendor bid.

(4)

If property is unsold at the end of an auction or other bidding process referred to in subsection (1), any subsequent reference to a particular bid as being the amount at which the property was passed in is a false or misleading representation with respect to the price of the property if the bid was a vendor bid.

(5)

In this section, vendor bid means a bid made by the vendor or any person (including an auctioneer) acting as agent for the vendor.

Section 14A: inserted, on 18 December 2013, by section 12 of the Fair Trading Amendment Act 2013 (2013 No 143).