Computer Law and Security Report (now called Computer Law and Security Review) has been cited in the NSW Supreme Court in a recent case, Peter Smythe v Vincent Thomas, 2007 NSWSC 844, involving the sale on eBay of a rare World War II aircraft.

In August 2006 Vincent Thomas listed a Wirraway Australian Warbird aircraft on eBay with a minimum bid of $150,000. With 20 seconds to go before the end of the auction Peter Smythe placed a bid in accordance with eBay rules for $150,000. Both parties then received an email from eBay stating that Smythe had ‘won’ the auction. However, the seller tried to argue that he should not be required to sell the aircraft at the minimum bid price, claiming that the eBay auction system does not provide a binding legal agreement.

The ensuing court case referred to an article entitled    “Online Auctions — Germany Online Auctions under German Contract Law” by Jan-Malte Niemann published in Computer Law & Security Report , Vol 17 No 2, 2001,  which seeks to examine whether online auctions really deserve this title.

The judge concluded that a binding contract was formed between the parties in the same way as with a traditional auction and ordered Smythe to sell the aircraft to Thomas at the minimum bid price of $150,000.