Federal Firearms Auction Laws
Federal gun laws contain provisions that cover the sale of weapons at auction. Generally, auctions are covered by the same laws as gun shows. Sellers must hold an FFL (Federal Firearms License) and sell only to qualified buyers. On-line auctions may be affected by restrictions on sellers doing business outside the state in which they hold the license.
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Federal Firearms Licence Requirement
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A valid FFL must be held by anyone "selling, manufacturing, or importing guns, ammunition, and certain gun parts." Federal laws about holding a FFL are contained in Title 18, Section 923 of the U.S. Code. These laws are enforced by the Bureau of Alcohol, Tobacco, and Firearms.
Internet Sale of Firearms
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Laws governing the sale of firearms on Internet auctions are the same as those that apply to gun shows or gun stores. The dealer must hold an FFL and may transfer firearms only to qualified persons residing in the same state in which he is licensed. To sell out of state, he must find an FFL holder in the state where the purchaser resides. The second FFL holder would be responsible for obtaining an ATF Form 4473 (Firearms Transaction Record) from the purchaser and conducting the required background check.
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Estate Auctions
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An auctioneer selling firearms at an estate auction does not need an FFL because he is not technically a dealer "selling firearms at wholesale or retail." His business is not to sell arms, but to run the auction for the estate owner. The estate would be bound by the laws governing the selling of arms, but not the auctioneer. He would, however, be responsible for selling only to qualified buyers as defined by the law of the state.
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References
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