Question

If nothing is stated to the contrary in terms of an auction, an auction is presumed to be ________.

Answer 1

Answer: with reserve

Explanation: If nothing is stated to the contrary in terms of an auction,an auction is presumed to be ________.

A)non-binding

B)a quasi-contract

C)without reserve

D)with reserve

E)an implied-in-law contract

An auction is presumed to be with reserve if nothing is stated to the contrary (in terms of an auction). What this means is that the seller is merely expressing or showing his intent to receive offers. In contrast, however, if an auction is without reserve, the lowest bid must be accepted by the auctioneer but if it is with reserve, the auctioneer may refuse to sell the item if he is not satisfied with the size of the highest bid.