What is the Lien Law relevant to auctioneers?

The Lien Law relevant to auctioneers primarily addresses the rights of sellers to claim payment for items sold. When auctioneers conduct sales on behalf of sellers, there is a general expectation that the seller will receive payment for the items they have consigned. The Lien Law serves to protect sellers by granting them a legal claim, or lien, over the proceeds from the sale of their items until they have been compensated. This ensures that sellers can recover their owed payments before the auctioneer distributes the proceeds from the auction.

Understanding this legal framework is crucial for auctioneers because it directly impacts how they manage items and proceeds during and after an auction. This legal premise fosters trust within the auction process and incentivizes sellers to use auction services, knowing their interests are legally protected.