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(Adopted at the 20th meeting of the Standing Committee of the Eighth National People's Congress on July 5, 1996 and amended in accordance with the Decision on Amending the Auction Law of the People's Republic of China adopted at the 11th meeting of the Standing Committee of the Tenth National People's Congress on August 28, 2004)
Chapter I General provisions
Article 1 This Law is formulated for the purpose of regulating auction acts, maintaining auction order and protecting the lawful rights and interests of all parties involved in auction activities。
Article 2 This Law shall apply to auction activities conducted by auction enterprises within the territory of the People's Republic of China。
Article 3 Auction means the sale of specific goods or property rights to the highest bidder in the form of public bidding。
Article 4 Auction activities shall abide by relevant laws and administrative regulations, and follow the principles of openness, fairness, justice, honesty and credit。
Article 5 The department in charge of the auction industry under The State Council shall exercise supervision and administration over the auction industry throughout the country。 The people's governments of provinces, autonomous regions and municipalities directly under the Central Government and the people's governments of cities divided into districts shall exercise supervision and administration over the auction industry within their respective administrative areas。
Chapter II Auction objects
Article 6 The objects of auction shall be articles or property rights that are owned by the client or that can be disposed of according to law。
Article 7 Articles or property rights whose sale is prohibited by laws and administrative regulations may not be used as auction objects。
Article 8 Articles or property rights that are subject to examination and approval before they can be transferred in accordance with the law or the provisions of The State Council shall go through the examination and approval procedures according to law before being auctioned。 Cultural relics entrusted for auction shall, before being auctioned, be appraised and approved according to law by the administrative department for cultural relics in the place where the auctioneer has his domicile。
Article 9 Where articles confiscated by State administrative organs according to law, articles that have paid taxes or fines or other articles that should be entrusted for auction in accordance with the provisions of The State Council, the auctioneer shall be appointed by the people's government of the province, autonomous region or municipality directly under the Central Government or the people's government of the city divided into districts where the property is located。 The provisions of the preceding paragraph shall apply to the auction of articles confiscated by the people's court according to law, articles that have been paid up to the fine or fine, and recovered articles that cannot be returned。
Chapter III Parties to the auction
Section 1 The auctioneer
Article 10 An auctioneer means an enterprise legal person established in accordance with this Law and the Company Law of the People's Republic of China to engage in auction activities。
Article 11 Auction enterprises may be established in cities divided into districts。The establishment of auction enterprises must be examined and approved by the department in charge of the auction industry of the local people's government of the province, autonomous region or municipality directly under the Central Government, and apply for registration with the administrative department for industry and commerce and obtain a business license。
Article 12 To establish an auction enterprise, the following conditions shall be met:
Article 13 An auction enterprise engaged in the auction of cultural relics shall have a registered capital of more than 10 million yuan and personnel with professional knowledge of cultural relics auction。
Article 14 Auction activities shall be presided over by an auctioneer。
Article 15 An auctioneer shall meet the following requirements: Any person who has been dismissed from public office or whose qualification certificate as an auctioneer has been revoked for less than five years, or who has received criminal punishment for intentional crimes, shall not serve as an auctioneer。
Article 16 The qualification assessment of auctioneers shall be uniformly organized by the auction industry association。After passing the examination, the auction industry association shall issue an auctioneer qualification certificate。
Article 17 The auction industry association is a social organization as a legal person established according to law and is a self-regulatory organization of the auction industry。The auction trade association shall exercise supervision over auction enterprises and auctioneers in accordance with this Law and its articles of association。
Article 18 An auctioneer shall have the right to require the client to explain the source and defects of the objects of auction。 The auctioneer shall explain to the bidder the defects of the objects of auction。
Article 19 An auctioneer shall have the obligation to keep articles submitted for auction by a client。
Article 20 After accepting the entrustment, an auctioneer may not entrust another auctioneer to auction without the consent of the consignor。
Article 21 Where a client or buyer requests that his or her identity be kept secret, the auctioneer shall keep it confidential。
Article 22 An auctioneer and its staff may not participate in the auction activities organized by themselves as bidders, and may not entrust others to bid on their behalf。
Article 23 An auctioneer may not auction his own articles or property rights in the auction activities organized by himself。
Article 24 After an auction is concluded, the auctioneer shall, in accordance with the agreement, pay the price of the auction object to the client and transfer the auction object to the buyer in accordance with the agreement。
Article 25 An trustee means a citizen, legal person or other organization that entrusts an auctioneer to auction articles or property rights。
Article 26 A client may go through the procedures for entrusted auction on his own, or he may have his agent go through the procedures for entrusted auction on his behalf。
Article 27 A client shall explain to the auctioneer the sources and defects of the objects of auction。
Article 28 The client shall have the right to determine the reserve price of the auction object and request the auctioneer to keep it confidential。 Where the auction of state-owned assets requires evaluation in accordance with the law or the provisions of The State Council, it shall be evaluated by an evaluation body established according to law, and the reserve price of the auction object shall be determined according to the evaluation results。
Article 29 A client may withdraw the object of auction before the auction begins。If a client withdraws an auction object, he shall pay the agreed fee to the auctioneer;If no agreement is made, the auctioneer shall pay reasonable expenses incurred for the auction。
Article 30 A client may not participate in bidding, nor may he entrust others to bid on his behalf。
Article 31 Where an auction object is handed over by the client in accordance with the agreement, after the auction is concluded, the client shall hand over the auction object to the buyer。
Article 32 A bidder means a citizen, legal person or any other organization that participates in bidding for an auction target。
Article 33 Where laws and administrative regulations provide for the conditions of sale of auction objects, bidders shall meet the prescribed conditions。
Article 34 Bidders may participate in the bidding themselves or entrust their agents to participate in the bidding。
Article 35 Bidders have the right to know the defects of auction objects, to examine auction objects and to consult relevant auction information。
Article 36 A bidder shall not withdraw his bid once he has made it, and his bid shall lose its binding force when any other bidder has made a higher bid。
Article 37 Bidders or bidders and auctioneers shall not maliciously collude to harm the interests of others。
Article 38 A buyer means a bidder who buys an auction object at the highest bid。
Article 39 A buyer shall pay the price of an auction object in accordance with the contract, and if it fails to pay the price in accordance with the contract, it shall bear the liability for breach of contract, or the auctioneer shall re-auction the auction object with the consent of the client。 Where an auction object is put up for auction again, the original buyer shall pay the commission payable by himself and the client in the first auction。If the price of the re-auction is lower than the original auction price, the original buyer shall make up the difference。
Article 40 Where a buyer fails to acquire an auction object in accordance with the contract, it shall have the right to demand that the auctioneer or the client bear the liability for breach of contract。 Where the buyer fails to accept the auction object in accordance with the agreement, it shall pay the storage expenses arising therefrom。
Chapter IV Auction procedure
Section 1 Auction entrustment
Article 41 In entrusting an auction of articles or property rights, a client shall provide a certificate of identity, a certificate of ownership of the auction objects as required by the auctioneer, or a certificate that the auction objects can be disposed of according to law, and other materials。
Article 42 An auctioneer shall verify the relevant documents and materials provided by the client。If an auctioneer accepts the entrustment, it shall sign a written entrustment auction contract with the client。
Article 43 If an auctioneer considers it necessary to make an appraisal of an auction object, it may do so。 If the appraisal conclusion is inconsistent with the condition of the auction object specified in the entrusted auction contract, the auctioneer shall have the right to request modification or termination of the contract。
Article 44 An entrusted auction contract shall contain the following items: (1) the name and domicile of the consignor and the auctioneer;
Article 45 An auctioneer shall publish an auction announcement seven days before the auction date。
Article 46 An auction announcement shall state the following: (1) the time and place of the auction;
Article 47 An auction announcement shall be published through newspapers or other news media。
Article 48 An auctioneer shall display the auction objects before the auction and provide the conditions for viewing the auction objects and relevant information。 Auction objects shall not be displayed for less than two days。
Article 49 An auctioneer shall announce auction rules and precautions before an auction。
Article 50 If an auction object has no reserve price, the auctioneer shall give an explanation before the auction。 Where an auction object has a reserve price, if the bidder's highest bid fails to reach the reserve price, the bid shall not take effect and the auctioneer shall stop the auction of the auction object。
Article 51 The auction shall be concluded after the auctioneer has confirmed the highest bid of the bidder by dropping the hammer or by any other way that publicly indicates the bid。
Article 52 After an auction is concluded, the buyer and the auctioneer shall sign a transaction confirmation。
Article 53 When conducting an auction, an auctioneer shall make a written auction record。The auction record shall be signed by the auctioneer and the recorder;If the auction is concluded, it shall also be signed by the buyer。
Article 54 An auctioneer shall properly keep complete account books, auction records and other relevant materials related to its business operations。 The term of custody of the account books, auction records and other relevant materials provided for in the preceding paragraph shall not be less than five years from the date of termination of the contract for entrusted auction。
Article 55 Where an auction object needs to go through the formalities for changing its license or transferring its property rights according to law, the client or buyer shall go through the formalities with the relevant administrative authority with the transaction certificate and relevant materials issued by the auctioneer。
Article 56 A client and a buyer may agree with the auctioneer on the proportion of commission。 If the trustee, the buyer and the auctioneer have not agreed on the commission ratio, and the auction is concluded, the auctioneer may charge the trustee and the buyer a commission not exceeding 5% of the auction transaction price。The proportion of commission shall be determined in inverse proportion to the auction transaction price。 If the auction fails to conclude, the auctioneer may charge the agreed fee to the trustee;In the absence of such an agreement, the consignor may collect reasonable expenses for the auction。
Article 57 In the event of a transaction involving the auction of articles specified in Article 9 of this Law, an auctioneer may charge a commission not exceeding five percent of the auction transaction price to the buyer。The proportion of commission shall be determined in inverse proportion to the auction transaction price。 If the auction fails to conclude, the provisions of paragraph 3 of Article 56 of this Law shall apply。
Chapter V Legal liability
Article 58 Where a client violates the provisions of Article 6 of this Law by entrusting the auction of articles or property rights that he does not own or may not dispose of according to law, he shall bear responsibility according to law。Where an auctioneer knows clearly that the client has no ownership of the articles or property rights to be auctioned or may not dispose of them according to law, he shall bear joint and several liability。
Article 59 State organs violate the provisions of Article 9 of this Law，Disposing without authorization of articles that should be entrusted to be auctioned by an auctioneer designated by the people's government of the province, autonomous region or municipality directly under the Central Government or the people's government of a city divided into districts where the property is located，The persons in charge and other persons directly responsible shall be given administrative sanctions according to law，Causing loss to the state，They shall also be liable for compensation。
Article 60 Those who, in violation of the provisions of Article 11 of this Law, set up auction enterprises without permission shall be banned by the administrative department for industry and commerce, confiscate their illegal earnings, and may be imposed a fine of not less than one time but not more than five times their illegal earnings。
Article 61 Where an auctioneer or a trustee violates the provisions of paragraph 2 of Article 18 and Article 27 of this Law by failing to explain the defects of the auction object, thereby causing damage to the buyer, the buyer shall have the right to claim compensation from the auctioneer.If the responsibility falls to the client, the auctioneer shall have the right to seek compensation from the client。 Where an auctioneer or a client declares before the auction that it cannot guarantee the authenticity or quality of the auction object, it shall not be liable for warranty of defects。 Where no declaration is made due to the defect of the auction object, the limitation period for the claim for compensation shall be one year, counted from the date on which the parties knew or should have known that their rights were harmed。 The relevant provisions of the Product Quality Law of the People's Republic of China and other laws shall apply to claims for compensation for personal and property damage caused by defects in auction objects during the limitation period。
Article 62 Where an auctioneer or its staff violates the provisions of Article 22 of this Law by participating in bidding or entrusting others to bid on his behalf, the administrative department for industry and commerce shall give a warning to the auctioneer and may impose a fine of not less than one time but not more than five times the auction commission;If the circumstances are serious, the business license shall be revoked。
Article 63 Where an auctioneer violates the provisions of Article 23 of this Law by auctioning his own articles or property rights in the auction activities organized by him, the administrative department for industry and commerce shall confiscate the proceeds from the auction。
Article 64 Where, in violation of the provisions of Article 30 of this Law, a client participates in an auction or entrusts another person to bid on his behalf, the administrative department for industry and commerce may impose a fine of not more than 30 percent of the auction transaction price on the client。
Article 65 Where, in violation of the provisions of Article 37 of this Law, there is malicious collusion between bidders or between bidders and auctioneers, thereby causing damage to others, the auction shall be invalid and shall bear the liability for compensation according to law。The administrative department for industry and commerce shall impose a fine of not less than 10 percent but not more than 30 percent of the maximum bid price on any bidder who participates in malicious collusion;To impose a fine of not less than 10% but not more than 50% of the maximum bid price on auctioneers who participate in malicious collusion。
Article 66 Where a commission is collected in violation of the provisions of Section 4 of Chapter 4 of this Law on the proportion of commission, the auctioneer shall return the excess portion to the client or buyer。The price control department may impose a fine of not less than twice but not more than five times the auction commission on the auctioneer。
Chapter VI Supplementary Provisions
Article 67 This Law shall apply to foreigners, foreign enterprises and organizations that entrust auction or participate in bidding within the territory of the People's Republic of China。
Article 68 Auction enterprises established before the implementation of this Law that do not meet the requirements prescribed by this Law shall meet the requirements prescribed by this Law within the prescribed time limit;If the requirements prescribed in this Law are not fulfilled within the time limit, the administrative department for industry and commerce shall cancel the registration and confiscate the business license。Specific implementation measures shall be formulated separately by The State Council。
Article 69 This Law shall enter into force as of January 1, 1997。 |
