Bidding, Withdrawal, Knockdown, and Sale Procedures
Bidding mechanics
For goods, North Carolina's version of UCC 2-328 supplies the default rules: an auction is with reserve unless explicitly without reserve; the auctioneer may open bidding; a sale is complete when the auctioneer announces completion by fall of the hammer or customary manner; in a reserve auction the seller may withdraw before completion; in a no-reserve auction the property cannot be withdrawn unless no bid is made within a reasonable time. A seller may bid only if notice is given.
Reserve, withdrawal, and seller bids
'With reserve' means the seller is not obligated to sell below a hidden or announced minimum. 'Absolute' or 'without reserve' means the property must be sold to the highest bidder, subject to the announced terms. The auctioneer may reject a bid, reopen bidding when a bid is made as the hammer falls, and set bid increments. Seller bids and auctioneer bids on the seller's behalf must be disclosed; otherwise they are shill bids.
Knockdown and sale completion
The knockdown is the acceptance. Record the bidder number, amount, and lot; do not later change the buyer because someone else claims a higher bid. Conditional or contingent bids should be rejected or handled under written terms. Online closings need a clear stated end rule to avoid sniping disputes.
Worked example
An auction is advertised 'absolute, no reserve.' Bidding reaches $5,000, and the auctioneer says, 'That is too low; I am withdrawing the lot.' Because the auction was explicitly without reserve and a bid was made within a reasonable time, withdrawal breaches the announced terms. The seller and auctioneer face contractual and consumer-protection exposure.
Traps that cost marks
Do not assume every auction is absolute. Do not confuse the last bid with completion; the knockdown completes the sale. Do not let a seller bid secretly. Do not apply goods rules to real property without checking the contract and announced terms.