New South Wales Consolidated Acts

PROPERTY AND STOCK AGENTS ACT 2002 - SECT 78

78 Collusive practices at auction sales

(1) A person must not, in relation to the sale by auction of any land or livestock, by a collusive practice induce or attempt to induce any other person--

(a) to abstain from bidding generally, or

(b) to abstain from bidding for any particular lot, or

(c) to bid to a limited extent only, or

(d) to do any other act or thing that might in any way prevent or tend to prevent free and open competition.

: Maximum penalty--

(a) 500 penalty units in the case of a corporation, or

(b) 250 penalty units in any other case.

(2) A person must not as a result of a collusive practice, at a sale by auction of any land or livestock--

(a) abstain or agree to abstain from bidding generally, or

(b) abstain or agree to abstain from bidding for any particular lot, or

(c) bid or agree to bid to a limited extent only, or

(d) do or agree to do any other act or thing that might in any way prevent or tend to prevent free and open competition.

: Maximum penalty--

(a) 500 penalty units in the case of a corporation, or

(b) 250 penalty units in any other case.

(3) An auctioneer must not sell by auction any land or livestock unless notice is given prior to the auction, in such manner and in such terms as may be prescribed by the regulations, of the material parts of this section.

: Maximum penalty--20 penalty units.

(4) In this section--

"collusive practice" means a promise, express or implied, made by a person that if the person is the successful bidder at auction for land or livestock--

(a) the person will give the person to whom the promise is made the right to elect to take over as purchaser through the auctioneer all or any of the land or livestock at the auction price, or

(b) the ownership of all or any of the land or livestock will be determined by tossing or the drawing of lots or any other method.