At an Auction for the First Time,Darcy Bids on a One-Hundred-Year-Old

question 59

Multiple Choice

At an auction for the first time,Darcy bids on a one-hundred-year-old Edison-brand phonograph,believing that it is worth more than the price asked. When the item proves to be less valuable,Darcy is

• A)liable on the bid.
• B)not liable on the bid because Darcy overestimated the value of the item.
• C)not liable on the bid because the auctioneer overstated the value of the item.
• D)not liable on the bid because this was Darcy's first auction

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Definitions:

Work Product

Documents and materials developed by attorneys or their agents in preparation for legal proceedings, which are generally protected from discovery.

Proper Business Purpose

A proper business purpose is a motive or reason for conducting business activities that is legal, ethical, and within the bounds of corporate governance standards.

Restatement Test

A guideline used in legal contexts to determine the interpretation or application of laws, often referencing the Restatements of the Law—a series of treatises on various legal subjects.

Liability for Negligence

Legal responsibility for harm caused by failing to act as a reasonable person would, resulting in damage or injury to another.