In an auction __________, the auctioneer takes bids as agent for the seller with the understanding that no contract is formed until the seller accepts the transaction.
A) without reserve
B) with reserve
C) without preserve
D) with preserve

Question

Quizplus · Accepted Answer

In an auction with reserve, the auctioneer is acting as an agent for the seller and the understanding is that a contract is not formed until the seller accepts the transaction. The reserve price is the minimum price that the seller is willing to accept for the item being auctioned. If the bidding does not reach this reserve price, the seller is not obligated to sell the item.

In an Auction __________, the Auctioneer Takes Bids as Agent