In department stores, at the movies, in restaurants and in most other places, good customer service would dictate that the customer is in fact always right – except at an auction house. Of course this statement is based on the understanding that "customer" refers to the "buyer" or the "high bidder."

Buyers at an auction should be treated courteously and with respect. Their needs and any issues they might have should be given serious consideration. If there is a problem then the auction house or the auctioneer should try to fix it if at all possible. However, buyers will never enjoy the same level of customer service that they receive from other more traditional establishments. They will most certainly not "always be right."

By law, both the auction house and the auctioneer have a fiduciary responsibility to their sellers, also referred to as consignors. This means that they are acting as the seller’s agent and they therefore must always act in the best interest of the seller. Should they do otherwise, they are in really big trouble.

A fiduciary is not allowed to have a conflict of interest between two different parties. If such a conflict does exist then the fiduciary is breaking the law. This means that an auctioneer or auction house cannot look out for both the sellers and the buyers at the same time. These two things are diametrically opposed. Sellers want the most money they can get for their items and buyers want those same items for as little money as possible.

This is not to say that as fiduciaries auction houses and auctioneers have free rein when it comes to satisfying a seller’s requirements. Under the Fair Trade Act, neither one is permitted to misrepresent merchandise just to benefit a seller. In this respect, auction houses and auctioneers are responsible to their buyers to present merchandise honestly and fairly, even if this goes against a seller’s wishes. They are bound to inform a seller that they will not sanction any unfair practices on his or her behalf.

As you can see, auction houses and auctioneers walk a really fine line when it comes to doing what is legally right for both buyers and sellers. Many times you will hear buyers complain about how an auctioneer executed their left bids. Either the auctioneer did not start the absentee bids low enough or the auctioneer ran the bids up.

To protect themselves, auction houses and auctioneers should have a set policy for handling absentee bids. With a set policy, buyers will know exactly how an auctioneer is going to proceed. This eliminates the auctioneer from having to make any bidding decisions on absentee transactions, thereby protecting the auctioneer from inadvertently becoming a buyer’s agent. This would be in direct conflict with the auctioneer’s main role as fiduciary for the seller.

An absentee bid policy could include opening each absentee bid at exactly half of its maximum value or at the full value, as long as it is consistent. The size of the bid increments to be used could also be predetermined further eliminating the need for the auctioneer to make such decisions on behalf of the buyers.

Buyers should not assume the deck is stacked against them because of all this. Everyone, sellers included, need to comprehend how important the buyers at an auction are and how it is in their own best interests that these buyers be extended every consideration. If the buyers do not feel as though they have been given a fair shake during the auction process, chances are they will not return. Empty seats are most certainly not in the best interest of the sellers.

On the other hand, buyers need to recognize that auction houses and auctioneers are in a difficult position – they have no choice but to follow the rules that have been laid out for them. This is an extremely difficult balancing act and buyers and sellers alike need to acknowledge that the house’s job is not an easy one. Perhaps customers on both sides of the fence could more carefully analyze what they deem to be fair or unfair treatment. The law is clear and killing the messenger will not change that.