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330.230 Auction advertising.
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Any advertising pertaining to an auction shall include the name of the
managing principal auctioneer for the auction and indicate that he or she is an
auctioneer, except that any advertising pertaining to an auction conducted at
an auction house operated by a licensed auction house operator shall include
the name of the auction house operator and indicate that he or she is an
auction house operator or "AHO." The advertising requirements in this
subsection shall not apply to directional signs if a sign with the name of the
managing principal auctioneer for the auction or the auction house operator is
placed so that it can be easily observed and clearly read by anyone entering
the auction site.
The existence and amount of any buyer's fee or buyer's premium shall be
clearly disclosed in all terms and conditions included in any advertisements for
a particular auction and in all terms and conditions presented or made
available prior to the start of a particular auction.
(a) An auction shall not be advertised as "Court Ordered" or use similar
wording implying court action unless:
1.
At least seventy-five percent (75%) of the items or lots in the
auction are being offered pursuant to one (1) or more federal, state,
or local court orders; and
2.
The items or lots were clearly not purchased or attained for the
purpose of resale at auction.
(b) The advertising shall clearly contain an explanation of the court order
including identification of the court.
(c) If less than one hundred percent (100%) of the items or lots being offered
at the auction are pursuant to one (1) or more court orders, then the
advertising shall clearly indicate that the auction is "With Additions" or use
similar wording.
(d) This subsection shall not prohibit clear, nonmisleading advertising of the
inclusion of specific real or personal property being offered pursuant to a
federal, state, or local court order in an auction if that real or personal
property is offered pursuant to a federal, state, or local court order and
was clearly not purchased or attained for the purpose of resale at auction.
(a) An auction shall not be advertised as a "Bankruptcy Auction" or "Items
from Bankruptcy" or use similar wording or any combination thereof
unless:
1.
The auction consists of at least seventy-five percent (75%) of items
or lots to be offered for one (1) or more open and working
bankruptcies under the jurisdiction of the United States Bankruptcy
Court;
2.
The items or lots were clearly not purchased or attained for the
purpose of resale at auction; and
3.
The advertising clearly includes the United States Bankruptcy Court
case number or numbers.
(b) If less than one hundred percent (100%) of the items or lots being offered
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at the auction are for one (1) or more bankruptcies, then the advertising
shall clearly indicate that the auction is "With Additions" or use similar
wording.
This subsection shall not prohibit clear, nonmisleading advertising of the
inclusion of specific real or personal property being offered for a
bankruptcy in an auction if that real or personal property is being offered
for one (1) or more open and working bankruptcies under the jurisdiction
of the United States Bankruptcy Court, was not purchased or attained for
the purpose of resale at auction, and the advertising clearly includes the
United States Bankruptcy Court case number or numbers.
An auction shall not be advertised as a "Seized Property Auction,"
"Confiscated Property Auction," or "Forfeiture Property Auction" or utilize
similar wording or any combination thereof implying governmental action
unless:
1.
The auction contains at least seventy-five percent (75%) of the
items or lots to be offered pursuant to one (1) or more federal, state,
or local governmental actions in which the real or personal property
is being offered directly for the federal, state, or local governmental
entity;
2.
The items or lots were clearly not purchased or attained for the
purpose of resale at auction; and
3.
The advertising clearly contains an explanation of the governmental
action, including identification of the governmental entity.
If less than one hundred percent (100%) of the items or lots being offered
at the auction are from one (1) or more governmental actions, then the
advertising shall clearly indicate that the auction is "With Additions" or use
similar wording.
This subsection shall not prohibit clear, nonmisleading advertising of the
inclusion of specific real or personal property being offered pursuant to a
federal, state, or local governmental action in an auction if the real or
personal property is offered directly for a federal, state, or local
governmental entity and was clearly not purchased or attained for the
purpose of resale at auction.
An auction shall not be advertised as a "Liquidation Auction," "Surplus
Auction," "Inventory Reduction Auction," or "Going Out of Business
Auction" or use similar wording or any combination thereof unless:
1.
The auction contains at least seventy-five percent (75%) of the
items or lots to be offered for one (1) or more liquidation, surplus,
inventory reduction, or going out of business situations in which the
real or personal property belongs to a company or other business
entity and is being offered as "out of stock"; and
2.
The items or lots were clearly not purchased or attained for the
purpose of resale at auction.
If less than one hundred percent (100%) of the items or lots being offered
at the auction are from one (1) or more liquidation, surplus, inventory
reduction, or going out of business situations, then the advertising shall
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clearly indicate that the auction is "With Additions" or use similar wording.
This subsection shall not prohibit clear, nonmisleading advertising of the
inclusion of specific real or personal property being offered for a
liquidation, surplus, inventory reduction, or going out of business situation,
or similar wording or any combination thereof, in an auction if the real or
personal property is being offered for a liquidation, surplus, inventory
reduction, or going out of business situation in which the real or personal
property belongs to a company or other business entity, is being offered
as "out of stock," and was clearly not purchased or attained for the
purpose of resale at auction.
An auction shall not be advertised as an "Estate Auction," "Estate
Settlement," or "To Settle the Estate of ... Auction" or use similar wording
or any combination thereof unless:
1.
At least seventy-five percent (75%) of the items or lots in the auction
are being offered for one (1) or more estates in which the real or
personal property belongs to the estate of one (1) or more deceased
persons and is being offered by the direction and authority of the
authorized executor or administrator, or by court order, or by the
direction and authority of one (1) or more direct heirs; and
2.
The items or lots were clearly not purchased or attained for the
purpose of resale at auction.
If less than one hundred percent (100%) of the items or lots being offered
at the auction are from one (1) or more estates, then the advertising shall
clearly indicate that the auction is "With Additions" or use similar wording.
This subsection shall not prohibit clear, nonmisleading advertising of the
inclusion of real or personal property offered for an estate in an auction if
the real or personal property is being offered for an estate as set forth in
this subsection.
An auction shall not be advertised as a "Living Estate Auction" or "To
Settle the Living Estate of ... Auction" or use similar wording or any
combination thereof unless:
1.
At least seventy-five percent (75%) of the items or lots in the auction
are being offered for one (1) or more living estates in which the real
or personal property belongs to a household that is in transition due
to a life-changing situation, including but not limited to one (1) or
more members of the household moving into a retirement home,
nursing home, or assisted living home or combining the household
with another; and
2.
The items or lots were clearly not purchased or attained for the
purpose of resale at auction.
If less than one hundred percent (100%) of the items or lots being offered
at the auction are from one (1) or more living estates, then the advertising
shall clearly indicate that the auction is "With Additions" or use similar
wording.
This subsection shall not prohibit clear, nonmisleading advertising of the
inclusion of real or personal property being offered for a living estate in an
auction if the real or personal property is being offered for a living estate
pursuant to this subsection.
Effective:June 25, 2009
History: Created 2009 Ky. Acts ch. 70, sec. 10, effective June 25, 2009.
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