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Online Auctions and Purchase without actually seeing the item

I was interested to know if participating in Auctions such- either in the actual physical ones or via the Internet like through EBAY is allowed in Islam ?
Also, is buying things online (which you cannot feel and confirm to be in good condition allowed? I heard it is Sunnah to make sure what you are buying is of good value and condition. What if we can get an assured warranty on the online product?)


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