The UCC § 2-328 (Sale by Auction) only has nine sentences, but they all are widely misunderstood. Here we take …
Shill bidding occurs at auctions all over the world every day. Is it a widespread occurrence? I would guess not, …
When sellers consign or otherwise relinquish their property, real or personal, to be sold at auction, they are giving up rights to that property. One right that is sometimes given up, but other times not, is the right to bid on that property at the auction.
Why do sellers want to bid on their own property at auction? Several possibilities exist:
- To make sure it demands a certain price, or otherwise they’ll retain ownership
- Because they have changed their mind about selling that property, and wish to keep it
- They wish to avoid a certain other person or entity from acquiring ownership of their property
- To increase the “apparent” market price of such property
For these or other reasons, sellers do wish to bid on their own property at auction, and do.