True or False: If an auctioneer receives a bid on the seller’s behalf without informing bidders, the buyer can avoid the sale.

The statement is true because if an auctioneer accepts a bid on the seller’s behalf without disclosing this to the bidders, it violates the principle of transparency that is critical in auction practices. Bidders have the right to know whether their bids are being influenced or if there are any undisclosed bids, as this can affect their decision to participate and the price they are willing to pay.

If the auctioneer does not disclose this action and a buyer discovers it later, they have the legal right to void the sale. This protects the integrity of the auction process and ensures that all participants operate under the same conditions and information, which is fundamental to fair bidding practices. This principle is often enforced by laws regulating auctioneering, reflecting the importance of honesty and clarity in the auction process.