Legal Definitions - bidding up

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.