Auctions

A sale open to the general public and conducted by an auctioneer, a person empowered to conduct such a sale, at which property is sold to the highest bidder.

A bid is an offer by a bidder, a prospective purchaser, to pay a designated amount for the property on sale.

A Dutch auction is a method of sale that entails the public offer of the property at a price in excess of its value, accompanied by a gradual reduction in price until the item is purchased.

According to the UNIFORM COMMERCIAL CODE (UCC), a body of law governing commercial transactions that has been adopted by the states, the auction sale of any item concludes with the fall of the hammer or in any other customary manner. Such a sale is "with reserve," which denotes that the goods can be withdrawn at any time, until the auctioneer announces the completion of the sale, unless the goods are explicitly put up "without reserve," which signifies that the article cannot be withdrawn after the call for bids unless no bid is made within a reasonable time. In both types of auctions, the bidder can withdraw a bid prior to the auctioneer's announcement that the sale has been completed.

Compensation

The party employing the auctioneer pays a commission regardless of whether he or she procures a sale, unless the auctioneer is responsible for the failure of the sale. The auctioneer is entitled to a reasonable sum unless a statute or contract provision determines the amount.