Auctioneers have to deal with a myriad of laws and rules in their businesses. License law affects many auctioneers, plus the Uniform Commercial Code (UCC,) contract law, agency law, and the list goes on.
Yet, can an auctioneer get in trouble for violating an association’s “code of ethics?” I recently read an article by Diane Disbrow titled “Law Supersedes Seller Confidentiality Requirement in Code” dated July 19, 2023, which prompted this treatise.
As Diane correctly notes, the law supersedes private club’s “codes of ethics.” Diane goes on in the article to talk about the real estate trade association’s code of ethics and standard of practices. Yet, these codes of ethics only apply to the membership of that club — and as such is not “law.”
If a question involves what legally is required, and the answer is what an association’s “code of ethics” says — that’s not the answer. The answer would have to be what laws (or administrative rules) apply here, which doesn’t even consider any club’s code.
I remember years ago I was told I was required to show proof an offer had been presented. I responded that there was no law in my state (or any state?) that required any kind of response to an offer to purchase. Nonetheless, I was referred to the association’s code of ethics, which didn’t apply to me (nor interest me) as I wasn’t a member.
Likewise, we wrote that associations can’t discipline any auctioneer beyond revoking their membership. State law, federal law, and other laws and rules can further discipline an auctioneer — but not a club: https://mikebrandlyauctioneer.wordpress.com/2017/08/07/auctioneer-associations-licensing-discipline/.
We noted here: https://mikebrandlyauctioneer.wordpress.com/2018/08/23/can-an-auctioneer-association-discipline-a-member/ that an association can refer criminal behavior or otherwise notify authorities of malfeasance, but alone can’t do much else.
In summary, if you’re a member of a club, the law supersedes your code of ethics. If you’re not a member, no club’s code of ethics applies to you at all. Regardless of club status, auctioneers should be primarily concerned with what the law and related rules dictate.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at Mike Brandly, Auctioneer, Brandly Real Estate & Auction, and formerly at Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, and an Instructor at the National Auctioneers Association’s Designation Academy and Western College of Auctioneering. He has served as faculty at the Certified Auctioneers Institute held at Indiana University and is approved by The Supreme Court of Ohio for attorney education.
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