13:11
lawguy we're nearly stats twins :D
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Simple English definitions for legal terms
knock-out auction
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A quick definition of knock-out auction:
A knock-out auction is when some people agree not to bid against each other before the auction starts. This is not allowed in some places because it can be unfair. An auction is when people bid on something and the person who offers the most money gets to buy it. There are different types of auctions, like ones where there is no minimum price and ones where there is a minimum price. In a Dutch auction, the price starts high and goes down until someone buys it.A more thorough explanation:
A knock-out auction is a type of auction where two or more bidders agree not to bid against each other.
Let's say there are three bidders at an auction for a rare painting. Two of the bidders have secretly agreed not to bid against each other, leaving the third bidder at a disadvantage. This is an example of a knock-out auction.
This type of auction is not allowed in some jurisdictions because it can be seen as unfair to other bidders.