sec.137Beneficial interest—other than options

### sec.137 Beneficial interest—other than options This section applies to goods placed by a person ( client ) with a chattel auctioneer for sale, but does not apply if section 136 applies. The chattel auctioneer commits an offence if the chattel auctioneer obtains a beneficial interest in the goods. Maximum penalty—200 penalty units or 3 years imprisonment. A person does not contravene subsection (2) if— the person— before the earlier of the auction of the goods or a contract for the sale of the goods is entered into, obtains the client’s written acknowledgement in the approved form that the client— is aware that the person is interested in obtaining a beneficial interest in the goods; and consents to the person obtaining the interest; and acts fairly and honestly in relation to the sale; and no commission or other reward is payable for the sale; and the client is in substantially as good a position as the client would be if the goods were sold at fair market value. If the chattel auctioneer has not obtained the acknowledgement mentioned in subsection (3) (a) (i) and knows, or ought to know, that an associate of the chattel auctioneer intends bidding at the auction, the chattel auctioneer must, immediately before the auction— identify the associate to those present at the auction; and announce to those present that the person is an associate of the chattel auctioneer and intends bidding at the auction. If the chattel auctioneer complies with subsection (4) , the chattel auctioneer is taken to have satisfied subsection (3) (a) (i) . A person may make a claim, under the Administration Act , against the fund if the person suffers financial loss because of a contravention of this section. (sec.137-ssec.1) This section applies to goods placed by a person ( client ) with a chattel auctioneer for sale, but does not apply if section 136 applies. (sec.137-ssec.2) The chattel auctioneer commits an offence if the chattel auctioneer obtains a beneficial interest in the goods. Maximum penalty—200 penalty units or 3 years imprisonment. (sec.137-ssec.3) A person does not contravene subsection (2) if— the person— before the earlier of the auction of the goods or a contract for the sale of the goods is entered into, obtains the client’s written acknowledgement in the approved form that the client— is aware that the person is interested in obtaining a beneficial interest in the goods; and consents to the person obtaining the interest; and acts fairly and honestly in relation to the sale; and no commission or other reward is payable for the sale; and the client is in substantially as good a position as the client would be if the goods were sold at fair market value. (sec.137-ssec.4) If the chattel auctioneer has not obtained the acknowledgement mentioned in subsection (3) (a) (i) and knows, or ought to know, that an associate of the chattel auctioneer intends bidding at the auction, the chattel auctioneer must, immediately before the auction— identify the associate to those present at the auction; and announce to those present that the person is an associate of the chattel auctioneer and intends bidding at the auction. (sec.137-ssec.5) If the chattel auctioneer complies with subsection (4) , the chattel auctioneer is taken to have satisfied subsection (3) (a) (i) . A person may make a claim, under the Administration Act , against the fund if the person suffers financial loss because of a contravention of this section. - (a) the person— (i) before the earlier of the auction of the goods or a contract for the sale of the goods is entered into, obtains the client’s written acknowledgement in the approved form that the client— (A) is aware that the person is interested in obtaining a beneficial interest in the goods; and (B) consents to the person obtaining the interest; and (ii) acts fairly and honestly in relation to the sale; and - (i) before the earlier of the auction of the goods or a contract for the sale of the goods is entered into, obtains the client’s written acknowledgement in the approved form that the client— - (A) is aware that the person is interested in obtaining a beneficial interest in the goods; and (B) consents to the person obtaining the interest; and - (A) is aware that the person is interested in obtaining a beneficial interest in the goods; and - (B) consents to the person obtaining the interest; and - (ii) acts fairly and honestly in relation to the sale; and - (b) no commission or other reward is payable for the sale; and - (c) the client is in substantially as good a position as the client would be if the goods were sold at fair market value. - (i) before the earlier of the auction of the goods or a contract for the sale of the goods is entered into, obtains the client’s written acknowledgement in the approved form that the client— - (A) is aware that the person is interested in obtaining a beneficial interest in the goods; and (B) consents to the person obtaining the interest; and - (A) is aware that the person is interested in obtaining a beneficial interest in the goods; and - (B) consents to the person obtaining the interest; and - (ii) acts fairly and honestly in relation to the sale; and - (A) is aware that the person is interested in obtaining a beneficial interest in the goods; and - (B) consents to the person obtaining the interest; and - (a) identify the associate to those present at the auction; and - (b) announce to those present that the person is an associate of the chattel auctioneer and intends bidding at the auction.