What is the name of your state?What is the name of your state? CA
I make a living selling high value ($500-$5,000) items in online auctions. As you would expect, non-paying bidders are frequent (about 5%) and continuing to increase. Although the auction company will refund <I>part</I> of my expenses when a buyer doesn't pay, there definitely is a cost associated with non-paying bidders:
1) The auction company refunds my final value fees (percentage of sale price), but not my listing fees. My listing fees which are lost each time usually amount to $25-$30 (because of upgraded "featured" status on listings)
2) In addition, the re-listed auction <B>always</B> sells for a lower price when re-listed. I think perhaps that the bidders who lost the first auction don't waste their time bidding the second time. This means I usually lose a few hundred dollars because of the lower sales price the second time.
Question: Since bidding on an auction is considered to be a binding contract, can I sue the original winner/non-payer for listing fees and the difference between the original auction price and the re-listed auction price? Would a small claims court consider my actions to mitigate the loss by re-listing reasonable and award me the difference in price from the first "sale" and the lower priced second sale as damages? Is there any similar case law on auctions that I can review?
It normally doesn't make sense to chase non-payers, but I have recently had a few who live closeby and I'm getting sick of the non-payers who cost me time and money. Filing in small claims court would be easy. Advice?
Thanks!
Greg
I make a living selling high value ($500-$5,000) items in online auctions. As you would expect, non-paying bidders are frequent (about 5%) and continuing to increase. Although the auction company will refund <I>part</I> of my expenses when a buyer doesn't pay, there definitely is a cost associated with non-paying bidders:
1) The auction company refunds my final value fees (percentage of sale price), but not my listing fees. My listing fees which are lost each time usually amount to $25-$30 (because of upgraded "featured" status on listings)
2) In addition, the re-listed auction <B>always</B> sells for a lower price when re-listed. I think perhaps that the bidders who lost the first auction don't waste their time bidding the second time. This means I usually lose a few hundred dollars because of the lower sales price the second time.
Question: Since bidding on an auction is considered to be a binding contract, can I sue the original winner/non-payer for listing fees and the difference between the original auction price and the re-listed auction price? Would a small claims court consider my actions to mitigate the loss by re-listing reasonable and award me the difference in price from the first "sale" and the lower priced second sale as damages? Is there any similar case law on auctions that I can review?
It normally doesn't make sense to chase non-payers, but I have recently had a few who live closeby and I'm getting sick of the non-payers who cost me time and money. Filing in small claims court would be easy. Advice?
Thanks!
Greg