At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is
A)still liable on the bid.
B)not liable on the bid because he underestimated the cost of repairs.
C)not liable on the bid because the auctioneer misrepresented the value.
D)not liable on the bid because the need for repair is not a material fact.

Question

Quizplus · Accepted Answer

Ben is still liable on his bid because auctions operate under the principle that the bidder assumes the risk of the condition of the item being bid on, unless there is explicit misrepresentation by the seller. Misjudging the value or condition of the item does not release the bidder from their bid.

At an Auction, Ben Bids on a 1957 Chevy Coupe