Question

Which of the following statements is true with regard to an auction of goods?

A. A bidder may retract a bid before the completion of the sale only if the auction is without reserve.
B. A bidder's retraction of a bid will revive the prior bid if the sale is with reserve.
C. The auctioneer may withdraw the goods at any time prior to completion of the sale unless the goods are put up without reserve.
D. In a sale with reserve, a bid made while the hammer is falling automatically reopens the bidding.

Answer 1

The true statement about an auction is that the auctioneer can withdraw the goods any time before the sale is complete, unless it's an auction without reserve.

Step-by-step explanation:

The true statement with regard to an auction of goods is the auctioneer may withdraw the goods at any time prior to completion of the sale unless the goods are put up without reserve. In an auction with reserve, the auctioneer retains the right to withdraw the goods at any time before they have actually completed the sale, which generally occurs at the fall of the hammer.

However, in an auction without reserve, also known as an absolute auction, once a bid is placed, the auctioneer must continue until the sale is completed, and they cannot withdraw the goods. Retracting bids in auctions with reserve may cancel the current bid but doesn't typically revive any prior bids. And furthermore, a bid made while the hammer is falling does not reopen bidding; the fall of the hammer signals the end of bidding and the completion of the sale.