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Chuck,
It is correct that there is no buy it now button, but having text that says "Buy it Now" with a price that is lower than the reserve price is certainly confusing to would-be bidders. I'm not sure I understand what you are saying about the safety code, the simple answer is that if the person who lists the item for sale does not put in a buy-it-now price, then the buy-it-now text should simply not be shown, there shouldn't be any value there at all, no display at all because the person listing the item didn't want to use that feature.
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