A seller is responsible for delivery of goods when shipped unless the parties agree otherwise in advance. If you agreed that the buyer bears the risk of loss during shipment, the buyer is out of luck. I'm not sure what effect your offer of insurance is. I don't really understand the nuances of insurance, but, from posts on the board, my understanding is that insurance provides reimbursement for the sender, not the recipient. I could be wrong about that. In any case, I would include explicit language in your auctions that if the buyer chooses not to buy insurance, buyer will be responsible for all loss or damage to the item auctioned once the item has been placed in the hands of the shipper (UPS, Fedex, USPS, whoever). As a sidenote, as a buyer, I am leary of bearing the risk of damage on an item I have never seen. How can I be sure the damage occured AFTER it was delivered to the shipper? In the case of a missing chip, of course, the buyer can determined if the item has been sent if they have insurance, but insurance is also for damage. Just my 2 cents.

In your case, I would imagine, but would not be sure that you are responsible for the loss of the chip. I do not believe the simple offering of insurance changes the party that bears the risk of loss. I can not comment on the issues under the Club's code of ethics.

Michael Siskin