An SA auctioneer pretends to take a bid from the back of the room to lift the price, although nobody bid. What does the law say?
Correct Answer
D) It is prohibited for an auctioneer to claim a bid when none was made
The SA Act prohibits an auctioneer from suggesting that a bid has been taken when in fact no bid was made. Separately, section 24N prohibits anyone from bidding on a vendor's behalf and prohibits an auctioneer from taking a bid known to be made by the vendor, with a maximum fine of $20,000.
Why This Is the Correct Answer
SA auctioneers are prohibited from claiming bids that were never made.
Why the Other Options Are Wrong
Background Knowledge for Ethics Compliance
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