Question

At an auction, Benny bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Benny estimated, and thus is worth less as is, Benny is________.

Answer 1

Answer: A) ​still liable on the bid.

Explanation: At an auction, Benny bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Benny estimated, and thus is worth less as is, Benny is​

A) ​still liable on the bid.

B) ​not liable on the bid because he underestimated the cost of repairs.

C) ​not liable on the bid because the auctioneer misrepresented the value.

D) ​not liable on the bid because an auction is not subject to contract law.

The fact that the automobile did not turn out as expected for Benny does not mean he is not liable to the bid. In fact, he is, and this is because, a bidder in an auction is duty bound to pay the bid price in order to fulfill his/her promise. Generally, an auction is complete when the bid is accepted and and once a bid is accepted, the seller has no right to accept a higher bid, nor can a buyer (in this case Benny) withdraw the buyer’s bid. Benny has to pay and take the Chevy coupe after auction and so he's still liable for the bid.

Answer 2

Answer:

The correct answer is letter "A": still liable on the bid.

Explanation:

Auctions are sales events where goods are offered at a certain price -called the base price- but the final buyer will be the individual who bids the highest for the item. Once a bid is placed, the bidder is liable for the payment and commissions for the transaction in the auction even if the good purchased is eventually not what was expected.

Prior to the item is sold, the bidder has the right to retract. After the article is sold, the bidder becomes the buyer and is fully liable for his or her new property.