True or False: An auctioneer is held responsible for the wrongdoings of the seller once the agency relationship is disclosed.

The assertion that an auctioneer is held responsible for the wrongdoings of the seller even after disclosing the agency relationship is generally true. In an agency relationship, the auctioneer acts on behalf of the seller and is expected to adhere to the fiduciary responsibilities that come with that role. These responsibilities include acting in the best interest of the seller and ensuring lawful conduct throughout the auction process.

However, the auctioneer’s liability can be influenced by factors such as the nature of the wrongdoing. If the auctioneer is complicit in the wrongdoing or fails to disclose critical information that misleads participants, they can be held liable despite having disclosed the agency. This is rooted in the larger legal principle that agency does not shield an agent from liability for their own wrongful actions.

While there may be conditions under which liability could be mitigated—such as the presence of a formal contract or lack of negligence—these specifics do not negate the inherent responsibility auctioneers hold. The fundamental principle that an auctioneer, as an agent, should act with integrity and transparency remains applicable regardless of these nuances.