Chapter I General Provisions
Article 1 This Law is enacted for the purpose of standardizing acts of auction, maintaining order of auction and protecting the lawful rights and interests of all the parities in activities of auction.
Article 2 This law applies to auction activities conducted by auction enterprises within the territory of the People's Republic of China .
Article 3 Auction refers to the means of selling and buying by which specific articles or goods or property rights are transferred through public bidding to the bidder that offers the highest price.
Article 4 The parties in activities of auction shall abide by the relevant laws and administrative rules and regulations and adhere to the principles of openness, fairness, justice and good faith.
Article 5 The department in charge of administration of the auction trade under
the State Council shall exercise supervision over and administration of the auction
trade throughout the country.
The departments in charge of administration of the auction trade under the People's governments of provinces, autonomous regions, municipalities directly under the Central Government, or cities divided into districts shall exercise supervision over and administration of the auction trade in their respective administrative regions.
Chapter II Objects of Auction
Article 6 Objects of auction shall be the articles or goods or property rights which are owned by the client or which the client may dispose of according to law.
Article 7 Articles or goods or property rights prohibited for sale by laws or administrative rules and regulations shall not be made objects of auction.
Article 8 With respect to the articles or goods or property rights whose transference is subject to examination and approval as provided for by laws or regulations of the State Council, the parties concerned shall, prior to their auction, go through the formalities for the examination and approval according to law.
With respect to the cultural relic under authorization for auction, they shall, prior to their auction, be subject to appraisal and permission given according to law by the administrative department for cultural relic in the place the auctioneer's residence is located.