RoaldDahl
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Simple English definitions for legal terms
bidding up
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A quick definition of bidding up:
Bidding up is when people try to buy something at an auction by making higher and higher bids. This is okay if everyone is doing it fairly, but it's not okay if people are working together to make the price go up. This is called colluding and it's against the law. Sometimes, when a company gets a job to build something, they try to save money by finding someone else to do part of the work for less money. This is called bid-shopping and it's not fair to the person who originally bid on the job.
A more thorough explanation:
Definition: Bidding up is the act of raising the price of an auction item by making a series of progressively higher bids. However, it is considered unlawful if the bids are made collusively by people with an interest in raising the bids.
Example: During an auction, a bidder may start with a low bid, and then another bidder may raise the bid. This process continues until the highest bidder wins the item. However, if two bidders collude to raise the price, it is considered illegal.
Explanation: Bidding up is a common practice in auctions, where bidders compete to win an item. However, if bidders collude to raise the price, it is considered illegal because it is unfair to other bidders. The example illustrates how bidding up works in an auction and how it can be illegal if done collusively.