Horsemen's Roundtable: Public Auctions - Rules & Disputes
with Dave Carson, Vernon Yoder, Brad Messersmith & Steve Andrews
published in The Draft Horse Journal, Winter, 1998 - 1999

Possibly the single most important aspect, and certainly one of the most visible faces of the heavy horse industry is the marketplace. Public auctions are as common today as the cold. To the newcomer, a horse sale may be as confusing as the instructions to programming the VCR clock. But they are one of the main places where people “get started.” We need them, but we also need to set the rules and make sure that the potential horse buyer understands and accepts those rules.

Problems that arise between buyer, seller and sale management have become painfully apparent in recent times. Maybe they always have been. We’ve asked some of the main players in today’s draft horse auctions their thoughts on avoiding problems, handling disputes and what new buyers need to know. In order to cover the breadth of the business, we queried an auctioneer, a regular and frequent consignor and two successful sale managers. Our panel of experts consists of:

Vernon Yoder, Arcola, Illinois, breeds, trades and farms with Belgian horses. He is also one of the sale managers of the Mid-America Draft Horse Sale, held each Spring in Rantoul, Illinois. A second generation Belgian breeder, Vernon has been involved in the draft horse industry his entire life.

In addition to representing horse sale management, and being a frequent buyer and consignor, Vernon is also a member of the Amish community.

Dave Carson, Listowel, Ontario, has been involved in buying, selling, showing and breeding draft horses for the last 20 years. Prior to that he grew up with ponies. His father took draft horses in on trade at his machinery dealership, so Dave had a chance to work with many heavy horses that were quiet and well-broke.

Dave now farms approximately 2,000 acres, keeps 100 head of horses and 1,500 head of Holstein cattle. He has been managing and selling all types of auctions for 30 years. He owns and operates David Carson Farms & Auction Services, Ltd. at Listowel, Ontario. His summer and fall draft horse sales are among the largest in Canada.

Brad Messersmith, Ionia, Iowa, attends most of the major draft horse sales each year, selling an average of 100 head of draft horses, driving horses, mules and saddle horses for other people. Involved in virtually every aspect of the industry, he also breaks, trains and shoes horses for a living and has been at it full-time for the past 7 years. Brad and his wife, Cindy, also raise a few purebred and crossbred Percherons at their northeast Iowa farm. At 35, Brad is the “youngster” on this panel of experts.

Steve Andrews, Wooster, Ohio, is unarguably one of the best draft horse auctioneers in North America. Most of you have seen, and heard, him crying the Columbus, Gordyville, Topeka and National Clyde horse sales. He has been involved with heavy horse sales for 25 years, working between 12 and 15 annually. He grew up in the Holmes County, Ohio, an Amish community, where draft horses were, and still are, a way of life. He also grew up in the auction business and the two worlds conveniently meshed in Columbus, at the Eastern States sale. Steve says, “The business was in a super resurgence and I was a young, eager auctioneer. The business has been through the cycle from unprecedented highs to unexplainable lows and has survived.”

1. Who is responsible for the animal when the gavel falls? When does the seller’s responsibility end? Does this vary from sale to sale?

Vernon Yoder: “The buyer is responsible when the gavel falls. If the seller recommends the horse right and recommends the horse as he would like to buy a horse, his responsibility ends when the gavel falls. This should be the same for all sales.”

Dave Carson: “The buyer is responsible for the animal after the fall of the gavel. But the seller should try to do their best to see that the animal is cared for until the new owner shows up. It is only good public relations and saves unnecessary problems.”

Brad Messersmith: “The buyer of the animal is responsible after the gavel falls, but it is the seller’s responsibility to get the horse back to its stall, halter it, unharness and wait for the arrival of the buyer. Therefore, the seller’s responsibility actually ends when he/she gets the horse back to the stall. This is the practice that should be used at every sale.”

Steve Andrews: “I believe that technically, ownership changes when the horse is pronounced sold. However, most auctions provide a post-sale inspection to the buyer. This opens up the change of ownership until the point of payment. The seller is responsible to get the horse back to the stall. Most consignors like to meet and talk to the new owners. I think all sales are similar in these terms.”

2. How should the sale management handle the situation when the buyer refuses a horse? How should they handle any dispute?

Vernon Yoder: “This could vary for different situations, but I always figured if I bought a horse that wasn’t quite what I thought, I’d just chalk it up as a learning experience. If there is a misrepresentation of the horse, take care of it at the sale, right away. Don’t wait until you get the horse home. But, sometimes it is a case of paying more than you wanted to. It works best if the buyer and seller get together and talk it over.”

Dave Carson: “I want to know before the end of the sale if the buyer refuses a horse. Then, I can look at the horse to determine if it is O.K., or if it was represented wrong. If misrepresented, then we cancel the sale. We will either resell the horse or the seller can take it home. If the buyer just decides that he paid too much or he doesn’t like the horse as well as he thought, we will resell it for him at the end of the sale and any losses will be his responsibility.”

Brad Messersmith: “It depends on why the buyer is refusing the horse. If they have a legitimate complaint such as the seller’s failure to identify a problem that the horse may have had, then the horse should be turned down and resold at the seller’s expense. If there is nothing wrong with the horse and it is as the seller has described, then the buyer with the last bid should not be able to turn down the animal.”

Steve Andrews: “When a buyer refuses a horse, the sale management has little recourse, except to contact the seller and to leave it to their discretion as to whether or not the horse is resold. All disputes need to be resolved with the input of seller, buyer and management.”

3. Who is responsible and how should it be handled if it is found that a seller has used drugs on a horse that has sold?

Vernon Yoder: “The seller is responsible for any misrepresentation due to the use of drugs. The seller should take the horse home if he used drugs.”

Dave Carson: “I have no sympathy for anyone who uses drugs on horses for sales. If a horse has been drugged, the seller is fully responsible.”

Brad Messersmith: “The seller would be responsible for the horse if it was found that a non-prescribed drug had been used to calm it down or hide lameness.”

Steve Andrews: “Performance-enhancing or altering drugs are a form of deception and create grounds for rejection for the buyer. However, burden of proof would fall to the buyer and testing is not instantaneous. Proven offenders should be barred from consigning. One auction requires disclosure of medicaton from the auction box.”

4. Who is responsible if a buyer gives his new horse a shot of penicillin, or other preventive medication, and the horse reacts adversely?

Vernon Yoder: “If the buyer of a new horse gives a preventive medication and the horse reacts, no one but the new owner can answer to that.”

Dave Carson: “If the buyer gives the horse any drugs, he has accepted responsibility and is fully culpable for the outcome.”

Brad Messersmith: “The buyer would be responsible since it would be his/her horse. Anything the buyer does after the horse is sold, is strictly up to him/her. Hopefully, the seller would inform the buyer if he/she thought the horse had any allergic reactions to any medications.”

Steve Andrews: “The buyer.”

5. How specific does the sale catalog need to state rules and dispute procedures to avoid lawsuits, stopped payments, etc.? When are there too many rules?

Vernon Yoder: “We [Mid-America Draft Horse Sale] don’t have as many rules as some auctions, but the basic rules should be enough, if everyone realizes that they are responsible for their own actions. We audio tape all of our sales to help sort things out in the event of a dispute. As someone that buys lots of horses at sales once said to me, ‘Oh well, I’m 21.’”

Dave Carson: “A catalogue should state exactly the rules of the sale as plain and as straight forward as possible. A bid at public auction, in Canada, is considered by law to be a verbal contract of purchase. The buyer must have been obviously misled before they can legally stop payment on a cheque. A few simple, plain rules printed and announced are sufficient. We video tape all of our sales, so we can replay the tape in case of dispute.”

Brad Messersmith: “I would say the catalogs should be very specific so that there won’t be any doubts or questions regarding the rules. I don’t think there ever are too many rules, because there is so much work and effort that goes into putting on a sale. There have to be strict rules and guidelines to make a sale a success.”

Steve Andrews: “Rules, terms, etc., and their intent are plain and explicit in all catalogs. Simply stated on the seller’s side– represent your horse honestly; on the buyer’s side– bid in good faith and pay the amount you bid. You’ll never totally avoid the potential for a lawsuit by written rules. Only people can avoid lawsuits.”

6. Does any statement made from the box or by the seller during the sale of his horse take precedence over what is printed in the catalog or advertising? One major sale catalog states that it does.

Vernon Yoder: “Any statement made from the box does take precedence over printed matter.”

Dave Carson: “Statements from the box during the sale of horses take precedence over printed catalogue material because things change from the time of printing the catalogue until sale time. Anyone attending the sale should understand this. That should also be stated clearly in the catalogue.

Brad Messersmith: “Yes. At all the major sales, a tape recorder is used when the seller is giving the statement about their horses. It is taped or videotaped so if there is any dispute on the seller’s statement, it can be verified by the tape.”

Steve Andrews: “Yes. Statements made by the owner or sale management, or on their behalf, concerning the horse, should always take precedence over statements printed in the catalog. Video and/or audio recordings of the auction settle the challenges of what was said.”

7. Concerning bred mares, if a vet is not available (which rarely happens these days), how recent does the pregnancy check have to have been performed?

Vernon Yoder: “In the fall, I like to see a veterinarian’s certificate made within the last week of the sale. At Spring sales, they will usually carry their own guarantee, unless short bred. Then a current vet check should be on hand. If you question whether the mare is in foal or not, check her before leaving the auction.”

Dave Carson: “I don’t know of any set time or rule to govern every sale. If the buyer accepts the mare without having her checked there would be no guarantee after she leaves the sale barn. If in doubt have her checked. Any reputable sale will have a vet on call.”

Brad Messersmith: “I like to have them checked within 3 weeks to a month prior to the sale, if the mares are at my facilities where I can keep a watchful eye on them. That way, the guarantee is 100% bred or not bred.”

Steve Andrews: “Pregnancy checks, including ultrasounds, should be done within 30 days of the sale.”

8. How should sale management handle a situation whereby a much-publicized consignment becomes a no-show?

Vernon Yoder: “That is a tough question to answer. I do know that from our side of the fence, it is not a good feeling when it happens. Once a consignment is committed, it should be at the sale, unless sick or injured.”

Dave Carson: “The consignor of any publicized no-show should be responsible for any sale costs. Plus, an announcement of the horse’s absence and the reason for it should be made as soon as possible. A pre-sale of horses, out of catalogue, should bar a consignor from consigning, for a period of time, set by the sale management. Any buyer trying to buy before the sale, out of catalogue, is trying to buy cheaper than he thinks that it will cost at the sale. He is also undermining his own industry.”

Brad Messersmith: “If the consignment doesn’t show because of an injury, then there is nothing that the sale management can do about it, besides charging a cataloging fee. But if the consignment has been sold before the sale, I feel that the consignee should pay commission on the horse as if it was sold at the auction because the sale management has done all of the advertisement. This is something that disturbs me whenever I take a consignment from a client. I make it very clear that the horse will be going to the sale, barring injuries or sickness.”

Steve Andrews: “If a consignment does not show for the sale, there’s little sale management can do, other than retain the catalog fee. Another reprimand could be refusal to advertise future consignments for blatant offenders.”

9. Which sales do you favor selling at, buying at or attending and why?

Vernon Yoder: “As a sale manager, I will refrain from this question. But I do enjoy any horse sale, big or small.”

Dave Carson: “I like to buy at the big sales where I can find something in the rough. I like to sell at my own sales, as the management needs the commission.”

Brad Messersmith: “As a consignor, I prefer selling at the Waverly-Midwest Horse Sale because it is centrally located and it is the handiest for everybody to attend. It brings large attendance and a large quantity of horses. It doesn’t hurt that we only live 30 minutes away, either. I think all the sales in the Midwest are very good. Some have better facilities than others. Some draw higher quality horses.”

Steve Andrews: “Each sale is unique unto itself and each sale every year is different. Numbers and quality vary, prices fluctuate, public attitude swings, but all auctions do a good job of marketing and promoting the industry.”

10. Are consignors getting harder to deal with? Are buyers? If so, why?

Vernon Yoder: “I don’t feel consignors are getting harder to deal with, but you will usually hear about a new trick every sale season. That makes it more of a challenge. Some buyers maybe are getting harder to deal with, but we haven’t yet had a problem that couldn’t be resolved with some good old-fashioned reason and common sense. I think all problems would be taken care of if everybody would practice the Golden Rule.”

Dave Carson: “Consignors are getting more cautious and are representing their animals better all the time. They are not harder to deal with. Sellers offering the most expect the least. Some cannot understand why a fit, well-presented horse will sell for so much when a horse out of the barnyard doesn’t. Selling anything is like your wedding day...you want to have everything the best that you can make it be. At a sale, you don’t get a second or third chance. Many new buyers do not understand the horse business. There are also buyers with no auction experience. These people need to be able to obtain information and help with their bidding and/or purchases.”

Brad Messersmith: “The consignors that I work with have been easy to deal with because most of the time, they are happy to be able to sell their horse for a fair amount of money. Buyers are getting more critical looking for the quality horses that are harder to find.”

Steve Andrews: “From my seat, I don’t see a change in buyer/seller demands or satisfaction.

“The goal of all horse sale management is to have the livestock honestly presented and fairly sold. I’ve never been a big fan of consumer protection in the horse sale business. In general, the current sales codes do a good job of explaining the ground rules. The best way to learn any business is to get involved in it. There are literally hundreds of good horse people who are willing to help new people into the business. Very little education is free. On the other side of the coin, new people don’t deserve to be walked on and over for someone’s personal gain. The draft horse industry as a whole has probably achieved this delicate balance better than most horse breeds. It’s the people that make the industry. And the heavy horse people as a group have historically been the best.