Question

At an auction for the first time, Dulcinea bids on a 100 year-old Edison-brand phonograph, believing that it is worth more than the price asked. When the item proves to be less valuable, Dulcinea is....

1) liable on the bid
2) not liable on the bid because Dulcinea overestimated the value of the bid
3) not liable on the bid because the auctioneer overstated the value of the auctioned item
4) not liable on the bid because this was Dulcinea's first auction

Answer 1

Dulcinea is liable on her auction bid for the phonograph, despite overestimating its value or being a first-time bidder, as auction bids are legally binding.

Step-by-step explanation:

When Dulcinea bids on a 100 year-old Edison-brand phonograph at an auction and later learns that it is less valuable than believed, she is still liable on the bid. This is because auction bids are legally binding agreements, and the bidder is responsible for the bid regardless of their personal estimation of the item's value or their experience level. Under typical auction rules, neither overestimating the value of the item nor being a first-time participant at an auction provides a valid excuse to avoid liability.

In this scenario, Dulcinea bids on a 100 year-old Edison-brand phonograph at an auction. Despite believing that the item is worth more than the price asked, it turns out to be less valuable. In this situation, Dulcinea is liable on the bid. When participating in an auction, bidders are legally bound to fulfill their bids, regardless of their personal expectations or the actual value of the item.