Chapter I General Provisions

Article 1 The auction rules are subject to any auction on the platform of zhaoonline.com provided by zhaoonline. Any Consignor, Bidder, Buyer and other concerned parties participating in the auction held by zhaoonline should read the Rules carefully and conform to the provisions hereof. All parties shall be liable for their own actions at auction and any loss caused by failure to read the Rules carefully.

Chapter II Conditions Mainly Concerning the Consignor

Article 2 Consignment Procedures: When arranging for consignment, the Consignor shall hold a valid identity card or passport or other certificates approved by the Chinese government in the case of the Consignor being a natural person. A valid certificate of registration, ID of legal representative or other legal authorization documents is required in the case of the Consignor being a legal entity or other organization, and sign a consignment contract with zhaoonline. When the Consignor arranges for consignment, zhaoonline shall be automatically authorized to make pictures, illustrations, catalogue, or other video images of the Lot.

Article 3 The Consignor's Agent: When arranging for consignment, the Consignor's Agent shall submit to zhaoonline a relevant authorization letter and hold a valid identity card or passport or other certificates approved by the Chinese government in the case of a natural person. A valid certificate of registration, ID of legal representative or other legal authorization documents is required in the case of a legal person or other organization. Zhaoonline is reserved the right to examine the above arrangement in any manner it consider reasonable.

Article 4 The Consignor's Warranties: The Consignor hereby makes irrevocable warranties as follows to us and the Buyer with respect to the consigned Lot: (1) the Consignor has exclusive and absolute ownership and legal right to dispose of the Lot. Without prejudice to any legal interest (including copyright) of any third party, the auction of the Lot shall not violate any relevant law and regulation; (2) the Consignor has, to the best of its knowledge, made full and complete disclosure and described to us with respect to the origin and any flaw or defect of the Lot without any concealment and fabrication; and (3) the Consignor shall indemnify and hold us and/or the Buyer from and against any claims, losses and damages or actions incurred or brought by the actual owner or any third party who claims to be the actual owner of the Lot and all expenses and costs incurred in connection therewith arising out of or in any way attributable to any breach of the above warranties.

Article 5 Zhaoonline's Discretion: Zhaoonline may decide the followings at its absolute discretion: (1) explanation and appraisal of any Lot made by the catalogue of Lot and/or new media and /or in other ways; (2) adoption of expert's opinion; (3) the Consignor's arrangements for the Lot in illustration, display and other forms of display and the standard of the charges to be paid. Unless otherwise agreed by the Consignor and zhaoonline, zhaoonline shall at its own discretion decide whether the Lot is appropriate to be auctioned by zhaoonline as well as the conditions of auction and the way of auction.

Article 6 Unauctionable Lot: After the Consignor has signed the sales contract with and delivered the Lot to zhaoonline, if for any reason zhaoonline believes that the Lot is not suitable for auction, the Consignor must collect the Lot within 30 days from the date of zhaoonline’s notice being dispatched (fees for the packaging and handling shall be paid by the Consignor), the contract between the Consignor and zhaoonline will cease on the date the Consignor collects the Lot. If during the abovementioned period the Consignor fails to collect the Lot, the contract will be automatically ended. If within seven days after the ceasing of the contract, the Consignor does not collect the Lot, zhaoonline reserves the right to sale the Lot by means of public auction or in other ways and conditions it considers proper. If zhaoonline succeed in selling the Lot, the sales proceeds will be paid to the Consignor, less reasonable handling expenses.

Article 7 Suspension of Auction: Zhaoonline may suspend any auction at any time under any one of the following situations: (1) zhaoonline has objection to the ownership and authenticity of the Lot; (2) zhaoonline has objection to the explanation of the Consignor or the accuracy regarding the Consignor's warranty ; and (3) any other reasonable causes.

Article 8 The Bidder is a person or an organization that has registered on our website, finished all necessary procedures and had the right to bid in auction, otherwise he will not be regarded as a formal Bidder.

Article 9 Display of Lot: Zhaoonline will prepare pictures to introduce the status of the Lot with words and/or pictures for the convenience of Bidders and Consignors. The words, Reference Price, pictures of the Lot and other images and advertisements are only for reference for Bidders and are subject to revision before auction. Zhaoonline provides no guarantee for the authenticity, value, tone, quality and flaw or defect of any Lot.

Article 10 Uncertainty of Display: In case that the tone, color, graduation and shape shown in pictures and/or any other illustrations, images and advertisements differ from those of the original of the Lot due to print, photograph and other technical reasons, the original shall apply. Any statement and appraisal in any ways (including but not limited to the certificate, catalogue, slide show, news media) of any Lot made by zhaoonline and its employees or their agents are only for reference and should not be relied on as any guarantee for the Lot. Zhaoonline and its employees or their agents shall undertake no liability for any inaccuracy and omission in the statements and appraisal mentioned above.

Article 11 Inspection by Bidder: It is the responsibility of the Bidder and/or its agents to personally inspect and investigate the actual status regarding the Lot. The Bidder shall judge the Lot himself in addition to the display, other images, and advertisements of the Lot issued by zhaoonline.

Article 12 Zhaoonline practices membership system. One will not have the right to bid on Lots on our platform until he completes the registration according to all the conditions. Without registration, anyone can only browse the Lots or enjoy other services of zhaoonline in a certain range, but is not entitled to participate in bidding.

Article 13 An auction quota system is applied to the registered members of zhaoonline. The significance of the system is to maintain the authenticity and seriousness of online auction. (1) the member who has not paid the margin but has confirmed the information by telephone can get auction quota of 100, to bid on the Lots whose values add up to less than 100 RMB; (2) the member who has not paid the margin but has confirmed information by ID card can get auction quota of 200, to bid on the lots whose values add up to less than 200 RMB; (3) margin payment: the proportion of the margin to auction quota is 1:100, namely every 1 RMB margin deposited will get the member auction quota of 100; (4) the margin can be returned to the member without interest, and at the same time the member's auction quota will accordingly decrease; (5) the concrete increase and decrease data of the margin and auction quota will be embodied in the personal account of the member; (6) members cannot bid on special Lots until they have finished special registration.

Article 14 The ways of zhaoonline's auction are divided into: Buy-now auction and Bidding. In Buy-now auction, the member can place his bid according to the actual situation; for bidding, the member can place the lowest bid required according to the actual situation. He can also set up Proxy Bidding to bid on his behalf.

Chapter III Conditions Mainly Concerning the Bidder

Article 15 Zhaoonline has a Proxy Bidding system. When the Bidder wants the system to automatically bid on his behalf, he shall set up it according to the tips of the system. If Proxy Bidding is used, one can be a high Bidder under the condition that his proxy bid must be higher in an increment than the bid placed by 'conventional bidding'. Zhaoonline's Proxy Bidding program adopts a ladder system, that is, each price range defaults different increment. When the Bidder sets up Proxy Bidding to bid, he will be given clear tips.

Article 16 Abnormal Events: In case of any abnormal events at auction, zhaoonline reserves the right to accordingly deal with them according to the actual situation. For instance, if there are abnormal events in bidding caused by congested network or network technology, zhaoonline reserves the right to cancel the result of the auction.

Article 17 After winning the auction, the Bidder becomes the Buyer of the Lot. Besides paying for the Lot, the Buyer must at the same time pay the related Buyer's premium as well, and pay by himself the relevant charges occur during the process of the payment and delivery of the transaction itself. If there is no special requirement, all the charges are settled in RMB.

Article 18 Zhaoonline, at any time, has the discretion to cancel the membership of the member who has violated the law or the auction rules, and is not liable for the relevant economic and legal responsibilities.

Article 19 Any member shall protect his membership by himself. Unless zhaoonline confirms in written permission that some Bidder is the agent of another member who identifies himself, the bid shall be regarded as the action of the Bidder himself. Zhaoonline is not liable for the relevant economic and legal responsibilities.

Article 20 After winning the auction, the Buyer will receive the Trade Confirmation delivered by zhaoonline (the forms of the Sales Confirmation is not only limited to email, insite message, but also include other valid means of notifications like fax, phone call, letter, etc.). Here the Bidder shall pay the price realized according to the price stated in the Sales Confirmation.

Article 21 After receiving the total amount the Buyer has paid, zhaoonline will at once arrange its contracted logistics company to dispatch the Lot to the appointed place according to the requirement of the Buyer. After signing for the Lot, the Buyer at once get the ownership, disposition or access of the Lot.

Article 22 The Buyer shall pay in 7 days after the Lot is traded (including the related charges like price realized and logistics delivery), and online (or by telephone, fax) submit a remittance report. If special situation occurs, the Buyer can request a deferred payment in written form, and it is necessary to gain zhaoonline's written permission.

Article 23 If the Buyer fails to pay for the Lot during the required time: (1) the Lot is considered unsold, and zhaoonline reserves the right to deduct the realized price of the Lot from the margin of the Buyer to indemnify the loss of zhaoonline and the Consignor, and the Lot will be re-auctioned or returned to the Consignor. (2) the bid history of the other Lots of the Buyer on the site will be frozen, and the Buyer's membership will be suspended and even cancelled. (3) zhaoonline reserves the right to bring a lawsuit against the Buyer and demand the Buyer to indemnify the loss suffered by zhaoonline due to the Buyer's breaching the contract.

Article 24 Zhaoonline’s employees may arrange packing and handling of the purchased Lot on behalf of the Buyer as the case maybe on its request and the Buyer shall be liable for any loss arising thereupon. In addition, zhaoonline shall undertake no liability for any fault, omissions, damages and losses caused by the packers or carriers the Buyer recommended.

Article 25 Besides conventional payment methods, it is welcome that the Buyer comes to zhaoonline to pay for and pick up the Lot.

Article 26 Confidentiality: Zhaoonline shall be obligated to maintain the confidentiality of any information provided to us, and indemnify all legal rights of Consignor, Bidder, Buyer and our company against any damages according to the relevant laws and regulations of the People's Republic of China.

Article 27 Copyright: Zhaoonline shall be entitled to take photographs, make illustrations, catalogue or other images relating to the Lot consigned to zhaoonline for auction and shall have the copyright for such photographs, illustrations, catalogue or other images mentioned above.

Article 28 Liability Exemption: Zhaoonline, acting as the agent of the Consignor, shall not be liable for any breach of contract by the Buyer or the Consignor.

Article 29 Settlement of Disputes: If any dispute arises from participation in the auction pursuant to this Conditions, all concerned parties shall submit such dispute to a Chinese court or a Chinese arbitration commission for arbitration. The legal basis to settle these disputes is the law of the People’s Republic of China.

Article 30 Recognizing the globalization of the Internet, any member shall agree to comply with all the local regulations and related international laws and international conventions concerning online action acceptability.

Article 31 Zhaoonline is based on the mutual trust between the website and the members. All the members of zhaoonline are obliged to abide by the articles of the Rules. These articles may be altered from time to time without informing the members. Zhaoonline will arouse the attention of the members by emails or announcements on the webpage. Thus, if any individual member wants to go on using these services, he shall regularly browse the Rules to know about the up-to-date regulations and need to accept the new articles and conditions. In no circumstances can any member make request or plea on grounds of not knowing the Rules.

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