Sale by Auction

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Sales
  5. General Obligation and Construction of Contract
  6. Sale by Auction

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  1. In a sale by auction if goods are put up in lots each lot is the subject of a separate sale.
  2. A sale by auction is complete when the auctioneer so announces by the fall of the hammer or in other customary manner. Where a bid is made while the hammer is falling in acceptance of a prior bid the auctioneer may in his discretion reopen the bidding or declare the goods sold under the bid on which the hammer was falling. In sales by auction the auctioneer shall be considered agent of both parties so far as to dispense with any further memorandum in writing than his own entries.
  3. Such a sale is with reserve unless the goods are in explicit terms put up without reserve. In an auction with reserve the auctioneer may withdraw the goods at any time until he announces completion of the sale. In an auction without reserve, after the auctioneer calls for bids on an article or lot, that article or lot cannot be withdrawn unless no bid is made within a reasonable time. In either case a bidder may retract his bid until the auctioneer's announcement of completion of the sale, but a bidder's retraction does not revive any previous bid.
  4. If the auctioneer knowingly receives a bid on the seller's behalf or the seller makes or procures such a bid, and notice has not been given that liberty for such bidding is reserved, the buyer may at his option avoid the sale or take the goods at the price of the last good faith bid prior to the completion of the sale. This subsection shall not apply to any bid at a forced sale.

(Code 1933, § 109A-2 - 328, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1968, p. 1101, § 1.)

Cross references.

- Regulation of livestock auctions generally, § 4-6-40 et seq.

JUDICIAL DECISIONS

Not applicable to real property sales.

- O.C.G.A. § 11-2-328 applies only to sales of goods as opposed to sales of real property. Cuba v. Resolution Trust Corp., 849 F. Supp. 793 (N.D. Ga. 1994).

Cited in Dublin Livestock & Comm'n Co. v. Day, 178 Ga. App. 50, 341 S.E.2d 913 (1986).

RESEARCH REFERENCES

Am. Jur. 2d.

- 7 Am. Jur. 2d, Auctions and Auctioneers, §§ 18, 26, 30, 34, 38, 40. 30 Am. Jur. 2d, Executions and Enforcement of Judgments, § 495.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:315.

C.J.S.

- 7 C.J.S., Auctions and Auctioneers, §§ 7, 8.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-328.

ALR.

- Modes of making and accepting bids at auctions, 11 A.L.R. 543.

Regulations affecting auctions or auctioneers, 39 A.L.R. 773; 111 A.L.R. 473.

Liability of auctioneer or clerk to buyer as to title, condition, or quality of property sold, 80 A.L.R.2d 1237.

Personal liability of auctioneer to owner or mortgage for conversion, 96 A.L.R.2d 208.

Auction sales under UCC § 2-328, 44 A.L.R.4th 110.

PART 4 TITLE, CREDITORS, AND GOOD FAITH PURCHASERS


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