Question

Vivian goes to an auction and sees a rare antique lamp that is an identical match to one she already has. At the proper time she bids on the lamp and is the highest bidder. Even though she is the highest bidder, the auctioneer refuses to accept her bid and withdraws the lamp from the auction. Can the auctioneer do that?
a.
Unless otherwise stated, the auctioneer had the right to withdraw the item before the fall of the hammer.
b.
Most auctions are without reserve and therefore the auctioneer cannot withdraw the lamp.
c.
Generally, the auctioneer is the offeror and the bidders are the offerees so there is a contract and Vivian will get the lamp.
d.
Generally, the auctioneer must sell to the highest bidder. Vivian will get the lamp.

Answer 1

Answer:

B

Explanation:

Any auction is either “with reserve” or “without reserve.” And the answer how an auctioneer handles higher bids rests with the type of auction being conducted.

In a with reserve auction, the auctioneer may refuse a higher bid (reserve the right to refuse …) where in a without reserve auction, any higher bid must be accepted.

Said another way, in a with reserve auction, the auctioneer is not bound to sell to the highest bidder. In essence, the next higher increment represents the minimum bid.