Nevada National Leasing Co. v. Hereford

Opinion

REYNOSO, J.

Nevada National Leasing Company (Nevada National), as owner, repossessed several pieces of heavy construction equipment. Thereafter, it sold the equipment at an auction. Unbeknownst to any other bidders, the owner and the auctioneer agreed that the owner would bid on the auctioned items to increase the sales prices. Does the California Uniform Commercial Code permit such a secret arrangement? We hold that it does not.

Under the California Uniform Commercial Code, section 2328, 1 the buyer at an auction for the sale of goods is protected from undisclosed, competitive bidding…