Arthur Made a Bid at an Auction by Calling Out

question 37

Multiple Choice

Arthur made a bid at an auction by calling out the amount of $250. The auctioneer acknowledged Arthur's bid. There were no higher bids, and before the fall of the auctioneer's hammer, Arthur announced that he was withdrawing the bid. The auctioneer said that it was too late for Arthur to withdraw his bid, because the bid had already been acknowledged. What is the result?

• A) Arthur's bid is an ordinary offer that can be revoked.
• B) Arthur's bid is firm and cannot be withdrawn.
• C) Since the auctioneer had in fact acknowledged Arthur's bid, the bid became an option exercisable at the election of the seller.
• D) Since the auctioneer had in fact acknowledged Arthur's bid, a contract had been formed by way of offer and acceptance; accordingly, Arthur's subsequent attempt to withdraw his bid was ineffective.

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Definitions:

Steel

An alloy of iron and carbon, and sometimes other elements, widely used in construction and manufacturing due to its high tensile strength and durability.

Rationality

The quality of being based on or in accordance with reason or logic, often involving the making of decisions using cost-benefit analysis.

Self-Interest

The pursuit of personal advantage and well-being, often considered the motivating factor behind economic activities.

Utility

The satisfaction or benefit derived by consumers from consuming goods and services.