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Well, auctions are supposed to be legally binding contracts if your auction situation qualifies under eBay's rules. So if you break the contract, you're liable under contract law. IANAL, however, but that's the way I see it.
I do not think it is legal for a seller to cancel the auction after a bid has been placed. BEFORE a bid has been placed, sure. There might be some extenuating circumstances, however.
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"There are finer fish in the sea than have ever been caught." -- Irish proverb
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