In a soft close with extended bidding, I noted that an auctioneer expressed, “Only previous bidders can place a new bid” and wondered why.
In fact, I had just seen this lot (with extended bidding) and was interested, but had not bid prior, so I couldn’t bid. Seems counterintuitive — if not legally problematic — to prohibit any registered bidder from bidding at any time.
I think I know why an auctioneer might have such a policy. By bidders knowing they have to bid at least once (on that lot) to be able to bid again if the lot extends, they bid — thus helping the price increase. Yet, if the bidder only notices the lot while it’s extending … there’s no such benefit.
We often cite Alex Lyon & Son, Sales Managers and Auctioneers, Inc. v. Leach, 844 S.E.2d 120 (W.Va. 2020) which would hold that any bidder satisfying the terms and conditions earns the right to bid. Yet, if the terms note this “not allowed to bid” provision, it seems to be a bad idea, but legal nonetheless.
This concept is akin to the longstanding spurious claim about “tie bids” outside of Kentucky, where the auctioneer would reopen the bid noting, “Only you two (the theoretically tied bidders) can bid.” Of course, this is absolute nonsense.
I think auctioneers should endeavor to maximize the bidder pool by registering the most qualified bidders through economically feasible means, permitting all of them to place higher bids as they wish. Not allowing any registered bidder to bid is almost always a bad idea.
Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at Mike Brandly, Auctioneer, Brandly Real Estate & Auction, and formerly at Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, and an Instructor at the National Auctioneers Association’s Designation Academy and Western College of Auctioneering. He has served as faculty at the Certified Auctioneers Institute held at Indiana University and is approved by The Supreme Court of Ohio for attorney education.
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