The DBC Trading Guide includes key terms and codes of practice that are practiced when doing business at the Diamond Bourse of Canada.
Membership in the DBC obligates each member to settle any disputes with any other member through the DBC’s ARBITRATION sub commitee. No member may go to any outside court system for resolution of complaints with another member unless the Bourses ARBITRATION system expressly grants that permission. Arbitrators have the power to subpoena, fine and suspend members who do not abide by their decisions.
ARBITRATION is a last resort for members who cannot reconcile their differences. Frivolous complaints should not be filed and could lead to fines.
A BROKER acts as an intermediary between buyer and seller. Brokers take merchandise on consignment and offers the goods to potential buyers. When a prospective buyer makes an offer (bid) to the owner (patron), the owner may or may not accept the offer. The BROKER’S role is to negotiate between buyer and seller until a mutually agreeable offer is reached. During this negotiation period, the item(s) must be sealed in a CACHET. The owner has the option of directing the BROKER to deliver the goods as sold, of having the CACHET opened by the bidder as not accepting the offer, or of withdrawing the item(s) from the negotiations.
The BROKER is fully responsible for the goods lost, exchanged or damaged while on MEMORANDUM to him. The BROKER shall return merchandise to the owner upon the owner’s request.
A BROKER may not leave merchandise for inspection or for any other purpose with a prospective buyer without the express permission of the owner (patron).
A BROKER shall notify the seller of an offer and its terms, as well as the identity of the prospective buyer. Having done so, the BROKER bears no financial responsibility in the event of a buyer’s default. A BROKER who issues his own INVOICE and/or fails to inform the seller of the buyer’s identity becomes in actuality, the buyer with full financial, legal and ethical responsibility to pay the seller, whether his customer pays him or not.
Once a sale is completed, the BROKER is entitled to a COMMISSION of not less than 1% of the sale amount. Any variation of this COMMISSION percentage must be agreed upon between seller and BROKER prior to any sale.
A BROKER may also act as a finder for the buyer. He searches the market for particular goods at the buyer’s request. In the event the BROKER introduces the client to a new source of goods, and in the event that the client should then establish ongoing direct contact with the new source thereby by-passing the BROKER, the new source (seller shall be obliged to pay the BROKER a COMMISSION on all subsequent sales to that buyer for a period of time that shall have been established between the parties involved.
COMMISSION is not less than one percent (1%) of the total sale amount in the absence of a prior agreement to the contrary. Payment of the BROKER’S COMMISSION is the responsibility of the seller and not the buyer, unless an understanding was reached prior to the completion of the sale. It is unethical for the seller and buyer to by-pass the BROKER and deal directly once negotiations have begun.
A DEALER is an independent merchant selling goods from his own inventory or merchandise for which he has accepted full responsibility with the approval of his source. He issues his own INVOICE and is, in effect, the seller.
As a member of the DBC, it is your dignified responsibility towards another member, or any potential buyer, to disclose both verbally and on all documentation (INVOICES, MEMORANDUMS, etc.) any treatment or any other process which alters the clarity or colour of the merchandise or any part thereof. Failure to do so can result in a fine and/or suspension.
An INVOICE documents the transfer of goods from seller to buyer. INVOICES should be filled out correctly and should include the names of the buyer and seller, the date, a full description of the goods including any DISCLOSURES, the price, and terms of sale. It is expected that the terms of sale will be complied with.
Merchandise given on consignment can be designated on a MEMORANDUM (MEMO). The goods so entrusted cannot be sold without the explicit permission of the owner and remain the property of the owner until a transaction is completed. The items listed on the MEMORANDUM become the consignee’s financial, legal and ethical responsibility from the moment the MEMO is signed. It is recommended that the MEMO be signed directly under the last item listed.
Goods on MEMORANDUM may not be pledged, offered, mailed, subsequently given to someone else on MEMO, nor can they in any way leave the possession of the consignee without the owner’s explicit consent.
It is good policy to check the weight of the goods on receipt and to make sure that the goods are examined and weighed by the owner upon return. When returning the goods, ask for the original signed copy of the MEMORANDUM or see that each stone returned is crossed off the MEMO by the owner.
MEMOS should be filled out correctly. Use proper names, accurate weights, dates and prices. If a percentage below any price guide (price list) is used, indicate which guide is used and the date of the issue used.
Goods on MEMORANDUM may be recalled at the discretion of the owner. Goods must be returned promptly upon demand by the owner.
VISITORS & GUEST BUYERS
When bringing a guest to the Bourse facility, members please advise your guest in advance that they must show photo ID at the door to secure entry. Members with guests visiting the Bourse facility must provide photo ID (passport or Canadian government identification card) which will be returned to the guest when leaving.
Members who bring non-Bourse members as buyers are financially responsible for their purchases, regardless of who signed the memorandum. There are no exceptions to this rule. Members are therefore advised to thoroughly verify the credit resources of the customer they are sponsoring. It is better to be safe than sorry.
It is unethical for another member to approach a customer and attempt to “steal” the buyer away from the member who brought him in. Any violation of this rule should be immediately escorted from the Bourse and denied future visitation. The member who signed that guest in may be penalized.