Question $7$

$1$ pts

AAA Auto Auctions opens the bidding on a $2011$ Camaro for $$5,000,$ and Bobby is the only bidder. There is no reserve. According to vehicle valuation agencies, the Camaro is worth $$6,000.$ Which is most accurate?

There is no agreement because Bobby's bid did not reach the fair market value of the vehicle

There is an agreement because Bobby accepted the auction house's offer of $$5,000$

There is no agreement because an item up for auction needs at least two bidders for the transaction to be valid

There is an agreement because Bobby's bid of $$5,000$ is the offer, and the lack of reserve means that the auction house must accept it