Who must be informed about the auction terms for "with reserve" sales?

For "with reserve" sales, it is essential that the bidders are informed about the auction terms because they need to understand the nature of the sale and the conditions that apply. In a "with reserve" auction, the seller retains the right to accept or reject bids, meaning that the item will not be sold unless a certain price or condition is met. This knowledge is crucial for bidders as it influences their bidding strategy and helps them make informed decisions.

Understanding these terms allows bidders to gauge the value of their bids in relation to the seller's expectations. If bidders are not aware that the auction is "with reserve," they might assume the highest bid will be accepted without question, which could lead to confusion and dissatisfaction after the auction proceeds. Thus, informing the bidders serves to uphold transparency and fairness in the auction process.