Plain language law

New Zealand law explained for everyone

Fair Trading Act 1986

Consumer transactions and auctions - Auctions

36ZA: Start and end of auction

You could also call this:

“How an auction starts and finishes, and what happens after”

An auction begins when the person running the auction, called the auctioneer, asks people to start making offers to buy something. This is called bidding.

The auction ends when the auctioneer clearly tells everyone that they can’t make any more offers.

Sometimes, even if no one buys the item during the auction, it can still count as being sold at the auction. This happens if someone who was at the auction makes an offer after it’s over, and the auctioneer accepts that offer before the end of the next working day.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6156668.

Topics:
Business > Fair trading
Money and consumer rights > Consumer protection
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36Z: Each lot is separate contract of sale, or

“Each piece of property sold at an auction is its own separate deal”

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36ZB: Notice to participants, or

“Rules for joining an auction must be clearly shown to everyone taking part”

Part 4A Consumer transactions and auctions
Auctions

36ZAStart and end of auction

  1. An auction starts when the auctioneer invites the first bid from potential participants.

  2. An auction ends when the auctioneer makes it clear that bidding is closed.

  3. However, property that is offered for sale by auction must be treated as having been sold at auction, even if the bidding ceased without the property being sold, if—

  4. the auctioneer accepts a subsequent offer from a person who attended the auction; and
    1. that offer is accepted before the end of the first working day following the day of the auction.

      Compare
      Notes
      • Section 36ZA: inserted, on , by section 23 of the Fair Trading Amendment Act 2013 (2013 No 143).