Asked by LeeAnn Tiffany on May 03, 2024
Verified
In the lawsuit in which Randy sues Erin for return of the $5,000, which of the following is the most likely result?
A) Randy will win because when an auction is held without reserve, the auctioneer is entitled to repossess any item at will.
B) Randy will lose only because he was not the actual seller. He was only selling at auction for someone else. The seller, however, would win in an action against Erin.
C) Randy would win because Erin made an insufficient offer.
D) Erin will win only if she can show that Randy had knowledge that cash was in the drawer before he sold it.
E) Erin will win because the auction was without reserve, and she properly bid on and bought the cash register with everyone knowing that the cash drawer was stuck.
Auction Without Reserve
An auction in which the item for sale will be sold regardless of price, with no minimum bid or reserve price set.
Repossession
Repossession is the act of reclaiming possession of property when a buyer defaults on payment or terms of a contract.
Insufficient Offer
A proposal or bid that fails to meet the minimum requirements or expectations, particularly in negotiations or transactions.
- Describe the principles of auctions, including the significance of an auction being with or without reserve.
Verified Answer
AT
Ashik ThomasMay 04, 2024
Final Answer :
E
Explanation :
Erin will win because the auction was without reserve, and she properly bid on and bought the cash register with everyone knowing that the cash drawer was stuck. In an auction without reserve, once the auctioneer accepts a bid, the item is sold to the highest bidder as is, including any contents or additional value the item may have that was not known at the time of sale.
Learning Objectives
- Describe the principles of auctions, including the significance of an auction being with or without reserve.