1. You say, “if I were the only person to show up for that auction and I bid a dollar, I’d get the whole farm for a dollar. Neither the seller nor the auctioneer could rescind their offer.”

Not true, necessarily. An absolute auction can be canceled before it starts, or before there is a solicitation for bids. In the case of only 1 bidder, that’s what most auctioneers would do — cancel the auction.

2. You say, “He cannot refuse any bids.

This isn’t true either. If the auction is opened, and there is a solicitation for bids, and someone bids within “a reasonable time,” the auction cannot be canceled — but that doesn’t mean that the auctioneer can’t refuse the opening bid — it just means he can’t withdraw the property.

3. You say, “don’t know what the reason for the sale of the farm is, but the seller is taking a risk by selling it at absolute auction.”

Actually, the contrary is true — with reserve auctions produce much smaller crowds, and almost always lower prices. Absolute auctions produce much larger crowds and therefore more money.