Paul,

In this case it doesn't matter as the reserve wasn't met. The answer to your question is No there is no obligation to complete an auction when you find out the seller misrepresented the item. HOWEVER . . . Ebay has proven over and over again that they don't care about misrepresentation because they are not experts in the field. It is likely that Ebay would consider you a non-paying bidder because they wouldn't want to have to think. It makes there head hurt.