Question

In the case of an auction, where there is a reserve price, the auctioneer calling for bids is:

a. Accepting offers.
b. Presenting an invitation to treat.
c. Making an offer.
d. Communicating acceptance.

Answer 1

In the case of an auction with a reserve price, the auctioneer calling for bids is presenting an invitation to treat.

Step-by-step explanation:

In the case of an auction with a reserve price, the auctioneer calling for bids is presenting an invitation to treat. An invitation to treat is a preliminary communication that invites a person to negotiate or make an offer, but it is not itself an offer to form a contract. By calling for bids, the auctioneer is initiating the negotiation process to find a price that the buyers are willing to accept.