Drew v. John Deere Co. of Syracuse, Inc.
Appellate Division of New York
241 N.Y.S.2d 267 (1963)
John Drew (plaintiff) defaulted on tractor financing, and John Deere Co. (defendant) repossessed the tractor and put it up for auction. Drew showed up and bid $1,500; at the end of the auction, the auctioneer announced John Deere itself had bid $1,600, sending the tractor back to John Deere. Drew sued, arguing John Deere had no right to bid on its own auctioned property because it never announced it would participate, meaning (in Drew's view) the auction was effectively without reserve. The trial court denied Drew's motion for summary judgment, and Drew appealed.
Whether, under the Uniform Commercial Code, a party may bid on its own auctioned property in the absence of an express statement that the auction is being held without reserve.