Scott, you said that

"Often, the winning bidder will not pay for some reason or another, or he/she will decide at the last minute that he/she didn't want the item. So, the seller can offer a Second Chance Offer to the second highest bidder."

Is it legal for a person just to change his mind after the auction is over? If it is, how is the seller to recoup his selling fee which ebay automatically bills.

Needless to say, up to this point I've never had that problem so I don't know what the ramifications are. Are legal actions in order if desired by the seller?