When Prospective Buyers Observe the Bids of Others and Decide

question 190

Multiple Choice

When prospective buyers observe the bids of others and decide whether or not to increase the bid price, it is called a

• A) forward auction.
• B) reverse auction.
• C) Webfront auction.
• D) traditional auction.
• E) bidder's war.

---

Definitions:

Member States

Countries or regions that are part of a larger federation, union, or association and abide by its regulations and benefit from its provisions.

Mailbox Rule

A legal principle stating that an offer is considered accepted once the acceptance is dispatched, not when it is received by the offeror.

Acceptance

In contract law, it refers to the act of agreeing to the terms of an offer, thereby creating a binding contract.

Valid Acceptance

An agreement to the terms of an offer in contract law, which results in a binding contract between the parties.