At a Townsville auction, bidding has just reached the reserve. The auctioneer then calls one more announced vendor bid to push it higher. What is the legal status of that bid?
Correct Answer
B) As a false bid, because vendor bids stop once the reserve is reached
Queensland allows vendor bids only up to the reserve price, and each must be announced as a vendor bid. Once bidding reaches the reserve the property is on the market, the auctioneer may no longer accept vendor bids, and any vendor bid after that point is a false bid, which is illegal.
Why This Is the Correct Answer
After the reserve is reached, a vendor bid is an illegal false bid.
Why the Other Options Are Wrong
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