Question

At an auction held without reserve, Chase is the high bidder on a violin. The violin owner says that Chase's bid is too low and refuses to accept the offer. Chase sues. Will he win?

(A) Yes, because the violin owner is obligated to accept the highest bid at an auction without reserve.
(B) No, because the auctioneer is not obligated to accept any bid, even if it is the highest bid.
(C) Yes, if Chase can prove that the violin owner was acting in bad faith by refusing to accept his bid.
(D) No, unless Chase can prove that he suffered damages as a result of the violin owner's refusal to accept his bid.

Answer 1

Chase is likely to win the lawsuit because at an auction without reserve, the violin owner is obligated to sell to the highest bidder, and refusing to do so is a breach of contract.

Step-by-step explanation:

If the auction in question is indeed held without reserve, this means the auctioneer must sell the item to the highest bidder. Therefore, answer (A) Yes, because the violin owner is obligated to accept the highest bid at an auction without reserve is correct. In an auction without reserve, once the auctioneer calls for bids on an item and a bid is made within the time allotted by auction regulations, the auctioneer cannot withdraw the item from the auction. Refusal to sell the item to Chase, the highest bidder, constitutes a breach of the auction contract. Therefore, based on the typically enforceable terms of an auction without reserve, Chase would likely win the lawsuit.

Regarding the possibility of a jury, in cases where there is a significant asset involved, such as a valuable violin, it could indeed be in the plaintiff's or defendant's best interest to have a jury that might side with what seems socially appropriate.