Auction with methods and mechanisms to avoid fraud

• US 20050278244A1
• Filed: 10/04/2004
• Published: 12/15/2005
• Est. Priority Date: 02/22/2000
• Status: Abandoned Application

• Current Assignee: Frank S. Yuan
• Original Assignee: Frank S. Yuan
• Inventors: Yuan, Frank S.
• Application Number:
  US10/959,671
• Publication Number:
  US 20050278244A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

An auction with methods and mechanisms to avoid fraud are described. One fraud avoidance aspect involves the use of a financial institution, such as a factoring entity. The financial institution guarantees at least a partial payment of the amount owed by the winning buyer to the seller in case the winning buyer does not pay. Another fraud avoidance aspect provides the winning buyer with a period of time to inspect the goods or services purchased at the auction before having to pay for them.

Claims

1. A method for providing an auction, comprising:

providing at least one seller that posts goods or services to be sold at the auction;

providing one or more buyers to bid on the goods or services;

providing an auction manager to conduct the auction wherein the one or more buyers bid on the posted goods or services;

designating a winning buyer; and

providing a guarantee by a financial institution to pay at least a portion of the payment due from the winning buyer to the seller.

2. The method of claim 1, wherein the financial institution is a factoring entity, a bank or a credit assurance company.

3. The method of claim 2 wherein the guarantee is a single transaction factoring agreement.

4. The method of claim 2 wherein the guarantee is a no-loan factoring agreement.

5. The method of claim 2 wherein the guarantee is a loan factoring agreement.

6. The method of claim 1, further comprising:

posting the goods or services online at a web site; and

conducting the auction online at the web site wherein the one or more buyers submit their bids online.

7. The method of claim 1, further comprising:

providing a plurality of sellers that post goods or services to be sold at the auction;

providing a plurality of buyers to bid on the goods or services;

conducting a plurality of auctions simultaneously;

designating a plurality of winning buyers; and

providing a guarantee by a financial institution to pay at least a portion of the payment due from the winning buyers to the sellers.

8. The method of claim 1 wherein the at least one seller applies online for the guarantee by the financial institution prior to posting goods or services for sale at the auction.

9. The method of claim 1 wherein at least one of the one or more buyers apply online for a credit check prior to bidding on goods or services for sale at the auction.

10. The method of claim 1 wherein a portion of the sales price of the goods or services sold at the auction is paid to the auction manager and/or financial institution.

11. The method of claim 1 wherein the financial institution receives commissions from the at least one seller in consideration for providing the guarantee, and wherein the auction manager receives a commission for each guarantee provided by the financial institution.

12. A method for providing an auction, comprising:

providing at least one seller that posts goods or services to be sold at the auction;

providing one or more buyers to bid on the goods or services;

providing an auction manager to conduct the auction wherein the one or more buyers bid on the posted goods or services;

designating a winning buyer; and

providing the winning buyer with a period of time in which to inspect the auctioned goods or services before payment is due.

13. The method of claim 12, further comprising:

posting the goods or services online at a web site; and

conducting the auction online at the web site wherein the one or more buyers submit their bids online.

14. The method of claim 12, further comprising:

providing a plurality of sellers that post goods or services to be sold at the auction;

providing a plurality of buyers to bid on the goods or services; and

conducting a plurality of auctions simultaneously;

designating a plurality of winning buyers; and

providing a guarantee by a financial institution to pay at least one of the sellers a portion of the payment due from the winning buyers to the at least one seller.

15. The method of claim 14 wherein the least one of the sellers applies online for the guarantee by the financial institution.

16. The method of claim 12 wherein at least one of the one or more buyers apply online for a credit check prior to bidding on goods or services for sale at the auction.

17. The method of claim 12 wherein a portion of the sales price of the goods or services sold at the auction is paid to the auction manager.

18. The method of claim 12 wherein the time period is 30 days.

19. A method for providing an auction, comprising:

providing at least one seller that posts goods or services to be sold at the auction;

providing one or more buyers to bid on the goods or services;

providing an auction manager to conduct the auction wherein the one or more buyers bid on the posted goods or services;

designating a winning buyer;

providing a guarantee by a financial institution to pay at least a portion of the payment due from the winning buyer to the seller; and

providing the winning buyer with a period of time in which to inspect the auctioned goods or services before payment is due.

20. The method of claim 19, wherein the financial institution is a factoring entity, a bank or a credit assurance company.

21. The method of claim 20 wherein the guarantee is a single transaction factoring agreement.

22. The method of claim 20 wherein the guarantee is a no-loan factoring agreement.

23. The method of claim 20 wherein the guarantee is a loan factoring agreement.

24. The method of claim 19, further comprising:

posting the goods or services online at a web site; and

conducting the auction online at the web site wherein the one or more buyers submit their bids online.

25. The method of claim 19, further comprising:

providing a plurality of sellers that post goods or services to be sold at the auction;

providing a plurality of buyers to bid on the goods or services;

conducting a plurality of auctions simultaneously;

designating a plurality of winning buyers; and

providing the guarantee by the financial institution to pay at least a portion of the payment due from the winning buyers to at least one of the sellers.

26. The method of claim 19 wherein the at least one seller applies online for the guarantee by the financial institution prior to posting goods or services for sale at the auction.

27. The method of claim 19 wherein at least one of the one or more buyers apply online for a credit check prior to bidding on goods or services for sale at the auction.

28. The method of claim 19 wherein a portion of the sales price of the goods or services sold at the auction is paid to the auction manager and/or financial institution.

29. The method of claim 19 wherein the financial institution receives commissions from the at least one seller in consideration for providing the guarantee, and wherein the auction manager receives a commission for each guarantee provided by the financial institution.

30. The method of claim 19 wherein the time period is 30 days.