Jon- I'm not sure about the law, but it would seem to me that the auction house takes greater responsibility because they are professionals. When I ran my auctions I specialized in vintage cards. It was my business to make sure I knew they were real, and that they weren't altered. If I made a mistake, and I did make several over the years, it was my responsibility to correct them. I was the presumed expert.
Now the example from this thread is pretty convoluted, and it seems like there could be many parties that bear some responsibility. I still think the guy who donated the ball knew there was something wrong with it. Just a gut feeling, of course.
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