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Multistate Bar Exam MBE Practice Test 4

At a no-reserve auction, the auctioneer put up a painting that was unsigned and apparently quite old.
A woman made the highest bid, which was $100, and the auctioneer slammed the gavel down, completing the transaction.

Before the day's auction ended, an art historian told the auctioneer in private during a break that the piece was an original by Claude Monet, worth about $1 million.

The auctioneer quickly told the successful bidder that the amount was rejected by the seller and that the piece would be withdrawn from the sale that day.

The woman sued the auctioneer, claiming that there was a binding contract and requesting specific performance.

Based strictly on the rules of offer and acceptance, is the auctioneer in danger of losing the painting to the successful bidder and, if so, why?

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