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| Category | OBLIGATORY RIGHT | Organ of Promulgation | The Standing Committee of the National People's Congress | Status of Effect | In Force |
| Date of Promulgation | 1996-07-05 | Effective Date | 1997-01-01 |
|
Auction Law of the People's Republic of China |
|---|
Section 1 Auction Broker
Section 2 Consignor
Section 3 Bidder
Section 4 Auction Vendee
Chapter IV Auction Procedures
Section 1 Entrustment of Auction
Section 2 Auction Announcement and Exhibition
Section 3 The Performance of Auction
Section 4 Commission Article 1 This Law is enacted for the purposes of standardizing auction Article 2 This Law shall apply to auction activities taken by auction Article 3 "Auction" refers to a form of sale under which, specific goods Article 4 Auction activities shall abide by relevant laws and Article 5 The department in charge of auction trade under the State The department in charge of auction trade under the people's government The public security organ shall take the auction trade as a special Article 6 A subject of auction shall be goods or property rights which Article 7 Goods or property rights which are prohibited from selling Article 8 In the case of goods or property rights the transfer of which In the case of entrustment for auction of cultural relics, an appraisal Article 9 Goods confiscated by the state's administrative organs in Auction of goods confiscated, or seized for covering fines or penalties, Section 1 Auction Broker Article 10 "Auction Broker" means incorporated companies established in Article 11 Auction companies may be established in districted cities. Article 12 For establishing an auction company, the following (1) have a registered capital of at least one million yuan; (2) have its own name, organization, residence and articles of (3) have certified auctioneers and other personnel suited to the auction (4) have auction service regulations in conformity with the provisions of (5) have a license for special trade issued by the public security organ; (6) conform to the provisions of the State Council concerning the (7) other requirements prescribed by laws and regulations. Article 13 Auction companies engaging in relics auction business shall Article 14 Auctions shall be presided over by a certified auctioneer. Article 15 An auctioneer shall meet the following conditions: (1) graduate experience of a junior college or higher, in addition to (2) work experience of at least two years at an auction company; and (3) having good conduct. Those who have been discharged from public employment or revoked of the Article 16 Qualification examinations for certified auctioneers shall be Article 17 As a self-disciplinary organization of the auction trade, the Article 18 The auction broker shall have the right to require the The auction broker shall state the defects of the subject of auction to Article 19 The auction broker shall be responsible for the care of Article 20 Without the permission of the consignor, the auction broker Article 21 When the consignor or auction vendee requires, the auction Article 22 Auction companies and their personnel may not take part as Article 23 Auction brokers may not auction their own goods or property Article 24 After the bargain has been struck, the auction broker shall, Section 2 Consignor Article 25 "Consignor" means citizens, legal persons or other Article 26 Consignors shall go through formalities of consignment for Article 27 Consignors shall state to the auction broker the sources and Article 28 Consignors shall have the right to set the reserve price of In the case of auction of state assets which need assessment according to Article 29 Consignors may withdraw the subjects of auction before the Article 30 Consignors may not take part in bidding, nor designate others Article 31 In the case of agreement under which the subject of auction Section 3 Bidder Article 32 "Bidder" means citizens, legal persons or other organizations Article 33 Where laws or regulations stipulate special conditions for Article 34 Bidders may make bidding either by themselves or by their Article 35 Bidders shall have the right to find out defects of the Article 36 A bid may not be withdrawn by the bidder once it has been Article 37 It is forbidden that bidders or bidders and auction brokers Section 4 Auction Vendee Article 38 "Auction Vendee" means a bidder who purchases the subject of Article 39 The auction vendee shall pay the amount of the subject of When a subject of auction is reauctioned, the original auction vendee Article 40 Auction vendees who cannot acquire the subject of auction in Auction vendees who fail to accept the subject of auction shall pay the Section 1 Entrustment of Auction Article 41 Consignors consigning goods or property rights for auction Article 42 The auction broker shall verify the documents and materials Article 43 Subjects of auction may be appraised if the auction broker If there is any discrepancy between the appraisal conclusion and the Article 44 The following particulars shall be clearly stated in a (1) the name and address of the consignor and auction broker; (2) the name, specification, quantity and quality of the subject of (3) the reserve price given by the consignor; (4) the time and place when and where the auction will be held; (5) the time and method when and thereby the subject of auction shall be (6) the commission and the method by which the commission shall be paid (7) the method by which the amount of the subject of auction shall be (8) the responsibility for breach of contract; and (9) other particulars agreed by the two parties. Section 2 Auction Announcement and Exhibition Article 45 The auction broker shall publish an auction announcement Article 46 The following particulars shall be clearly stated in the (1) the time and place when and where the auction will be held; (2) the subjects of auction; (3) the time and place when and where the subjects of auction will be (4) formalities required to be gone through for taking part in bidding; (5) other particulars needed to be announced. Article 47 Auction announcements shall be published in a newspaper or by Article 48 The auction broker shall exhibit the subjects of auction The exhibition of the subjects of auction shall last at least for two Section 3 The Performance of Auction Article 49 The auctioneer shall, before the auction, announce the Article 50 If there is no reserve price for a subject of auction, the In the case of a reserve price, if the highest bid fails to reach the Article 51 A bargain is made once the auctioneer has struck hammer on Article 52 After a bargain has been struck, the auction vendee and the Article 53 When performing auction, the auction broker shall make Article 54 Auction brokers shall properly keep the complete account The account books, auction records and other relevant materials mentioned Article 55 In the case of a subject of auction, the transfer of which Section 4 Commission Article 56 Consignors and auction vendees may make an agreement with the Where the consignor or auction vendee fails to make an agreement with the If the auction does not result in a transaction, the auction broker may Article 57 In the case of auction and transaction of goods mentioned in The provisions of Paragraph 3, Article 56 of this Law shall apply if Article 58 Consignors shall bear the responsibility if they, in Article 59 If any state organ, in violation of the provisions of Article 60 Auction companies established in violation of the provisions Article 61 If the auction broker or consignor, in violation of the Where the auction broker and consignor declare before the auction that The limitation of legal proceedings for claiming compensation in the case In the case of personal injury or property damage due to the defects of Article 62 If an auction company or its personnel, in violation of the Article 63 If an auction broker, in violation of the provisions of Article 64 If a consignor, in violation of the provisions of Article 30 Article 65 Where bidders or bidders and auction brokers, in violation of Article 66 Auction brokers who charge commissions in violation of the Article 67 Foreigners, foreign enterprises and organizations' Article 68 Auction companies which are established before the Article 69 This Law shall enter into force on January 1, 1997.
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Chapter V Legal Responsibility
Chapter VI Supplementary Provisions
Chapter I General Provisions
activities, maintaining auction orders and protecting the legitimate rights
and interests of all parties to auction activities.
companies within the territory of the People's Republic of China.
or property rights are transferred to the bidder who makes the highest bid
in public bidding.
regulations, and conform to the principles of openness, fairness,
impartiality and good faith.
Council shall conduct supervision and administration on the auction trade
throughout the country.
of provinces, autonomous regions, municipalities directly under the central
government and districted cities shall conduct supervision and administration
on the auction trade within their respective regions.
trade and exercise public security administration on it.
Chapter II Subject of Auction
the auction consignor owns or may dispose of according to law.
and buying by laws or regulations shall not be subjects of auction.
needs prior examination and approval according to laws or provisions of the
State Council, the examination and approval formalities must be completed
in accordance with the law before the auction.
and permit shall be obtained, before auction, from the administrative
department for relics at the place of residence of the auction broker.
accordance with the law or goods seized for covering taxes or penalties or
other goods, which should be auctioned according to provisions of the State
Council, shall be auctioned by an auction company appointed by the people's
government of the province, autonomous region, municipality directly under
the central government or the districted city at the place where the goods
are located.
by the people's court in accordance with the law, or goods which are
recovered by the people's court but cannot be returned, shall apply the
provisions of the preceding paragraph.
Chapter III Parties to Auction
accordance with this Law and the Company Law of the People's Republic of
China, to engage in auction business.
The establishment of auction companies must go through the examination and
approval formalities with the department in charge of the auction trade
under the people's government of the province, autonomous region or
municipalities directly under the central government, and the company
established shall apply for registration to, and draw a business license from
the administrative department for industry and commerce.
requirements must be satisfied:
association;
business they are to engage;
this Law and other relevant laws or regulations;
development of the auction trade; and
have a registered capital of at least 10 million yuan and personnel with
professional knowledge of relics auction.
specialized knowledge in auction;
auctioneer certificate shall not be an auctioneer within five years of the
penalty, nor may those who have been punished for an intentional crime be an
auctioneer.
unifiedly organized by the auction trade association, which shall issue an
auctioneer certificate to those who have passed the examination.
auction trade association shall be an incorporated social organization
established in accordance with the law. The auction trade association shall,
in accordance with this Law and its articles of association, exercise
supervision over auction companies and auctioneers.
consignor to state the source and defects of the subject of auction.
bidders.
goods consigned by the consignor for auction.
having accepted the consignment shall not re-consign it to another broker.
broker shall maintain confidentiality in respect of identities of the
consignor or auction vendee.
bidders in auctions conducted by themselves, nor may they designate others to
make a bid for them.
rights during auction activities conducted by themselves.
in accordance with the engagement, pay the amount of the subject of auction
to the consignor and, in accordance with the engagement, transfer the
subject of auction to the auction vendee.
organizations who consign their goods or property rights for auction to an
auction broker.
auction either by themselves or by their agents.
defects of the subjects of auction.
a subject of auction and require the auction broker to maintain it
confidential.
laws or provisions of the State Council, an assessment shall be conducted by
an assessment institution established in accordance with the law and,
according to the assessment results, a reserve price shall be set for the
subject of auction.
auction starts. Consignors withdrawing subjects of auction shall pay the
auction broker the agreed charge or, in the absence of an agreed charge,
reasonable expenses.
to do so.
shall be transferred by the consignor, the consignor shall, after the bargain
has been struck, transfer the subject of auction to the auction vendee.
who bid for subjects of auction.
the sale of the subject of auction, the bidders shall meet those conditions.
agents.
subjects of auction, examine the subjects of auction and consult relevant
auction materials.
made, but it shall lose binding force as soon as a higher bid has been made
by another bidder.
conclude with each other to harm the interests of other people.
auction by making the highest bid.
auction in accordance with the engagement, or if he fails to do so, he shall
bear the responsibility for breach of contract, or the subject of auction
may be re-auctioned after the auction broker has obtained approval from the
consignor.
shall pay the commissions which should be paid by the consignor and himself
for the first auction. If the amount from the re-auction is less than that
from the original one, the original auction vendee shall make up the
balance.
accordance with the engagement shall have the right to demand the auction
broker or consignor to assume the responsibility for breach of contract.
keeping expenses arising therefrom.
Chapter IV Auction Procedures
shall provide their identity certificates and documents of title to the
subject of auction or the proof of the right to dispose of the subject of
auction in accordance with law and other documents demanded by the auction
broker.
provided by the consignor. If the auction broker accepts the entrustment, it
shall conclude a written contract with the consignor for the entrustment of
auction.
thinks it necessary.
statement concerning the subject of auction in the contract for the
entrustment of auction, the auction broker shall have the right to require
the contract to be modified or terminated.
contract for entrustment of auction:
auction;
delivered or transferred;
and the time limit for the payment;
paid and the time limit for the payment;
seven days before the auction day.
auction announcement:
exhibited;
and
other news media.
before the auction, and provide relevant materials and conditions for
examining the subjects of auction.
days.
auction rules and points for attention.
auctioneer shall give the facts before the auction.
reserve price, that bid shall have no effect and the auctioneer shall cease
the auction of the relevant subject.
the highest bid or the bid has been publicly confirmed in other forms as
making a bargain.
auction broker shall sign a sales confirmation.
written auction records. Auction records shall be signed by the auctioneer
and the notetaker, and the vendee, if any.
books concerning their auction business activities, the written auction
records and other relevant materials.
in the preceding paragraph shall be kept at least for five years, accounting
from date on which the contract for auction entrustment terminates.
involves formalities for change of certificates or licenses or for title
transfer according to law, the consignor and auction vendee shall go through
said formalities with relevant administrative departments by presenting the
sales certification issued by the auction broker and other relevant materials.
auction broker on the brokerage proportion.
auction broker on the brokerage proportion, the auction broker may charge
the consignor and auction broker respectively a commission not more than five
per cent of the transaction price of the subject of auction, if the auction
results in a transaction. The brokerage proportion shall be determined on the
principle of being inversely proportional to the transaction price of the
subject of auction.
charge the consignor according to the prior engagement; in the absence of an
engagement, the auction broker may charge the consignor the reasonable
expenses expended for the auction.
Article 9 of this Law, the auction broker may charge the auction vendee a
commission not more than five per cent of the transaction price of the
subject of auction. The brokerage proportion shall be determined on the
principle of being inversely proportional to the transaction price of the
subject of auction.
the auction does not result in a transaction.
Chapter V Legal Responsibility
violation of the provisions of Article 6 of this Law, consign for auction
goods or property rights to which they have no title or which they may not
dispose of according to law. If the auction broker accepts the consignment
knowing well that the consignor has no title to, or according to law, may not
dispose of the goods or property rights, he shall bear a joint liability.
Article 9 of this Law, dispose of without authorization the goods which
according to law should be auctioned by an auction company designated by the
people's government of the province, autonomous region, municipality directly
under the central government or the districted city where said goods are
located, the person in charge directly responsible and other persons directly
responsible shall be given a disciplinary sanction and, if any losses have
been caused to the state, be liable for compensation.
of Article 11 of this Law and without approval and registration shall be
banned by the administrative department for industry and commerce with the
illegal earnings confiscated and a fine ranging from one to five times the
illegal earnings may be imposed concurrently.
provisions of Paragraph 2, Article 18 and Article 27 of this Law, fails to
state the defects of the subject of auction and thus causes damage to the
auction vendee, the latter shall have the right to claim compensation against
the auction broker; if it is the consignor who should assume the
responsibility, the auction broker shall have the right to claim recovery
against the consignor.
they cannot assure the genuineness or quality of the subject of auction, they
shall not be liable for assurance against defects.
of failure to state the defects of the subject of auction shall be one year,
accounting from the date on which the party concerned knows or has reason to
know that his right has been infringed upon.
the subject of auction, the limitation of legal proceedings for claiming
compensation shall apply the relevant provisions of the Law of the People's
Republic of China on Product Quality and other laws.
provisions of Article 22 of this Law, take part in the bidding or designate
others to make a bid for them, the administrative department for industry and
commerce shall give it a warning and may impose a fine ranging from one to
five times the auction commission and, if the circumstances are serious,
revoke its business license.
Article 23 of this Law, auctions its own goods or property rights during
auction activities conducted by itself, the income from the auction shall be
confiscated by the administrative department for industry and commerce.
of this Law, takes part in the bidding or designates others to make a bid for
him, the administrative department for industry and commerce shall impose on
the consignor a fine not exceeding 30 per cent of the auction transaction
price.
the provisions of Article 37 of this Law, conclude with each other and
cause damages to other people, they shall be liable for compensation and the
auction shall be deemed void. The administrative department for industry and
commerce shall impose on the bidders in conclusion a fine ranging from 10 to
30 per cent of the highest bid and a fine ranging from 10 to 50 per cent of
the highest bid on the auction broker in conclusion.
provisions of Section 4, Chapter IV of this Law concerning the brokerage
proportion shall return the overcharged amount to the consignor or auction
vendee. The price control authority may impose on the auction broker a fine
ranging from one to five times the auction commission.
Chapter VI Supplementary Provisions
consignment for auction and taking part in bidding shall apply this Law.
implementation of this Law and fail to satisfy the requirements demanded by
this Law shall come up to the requirements within a specified time limit; for
those failing to come up to the requirements demanded by this Law within the
specified time limit, the administrative department for industry and commerce
shall cancel their registration and revoke their business licenses. The
concrete implementation measures shall be formulated separately by the State
Council.
URL: http://www.asianlii.org/cn/legis/cen/laws/al109