What action can a buyer take if they discover that the seller bid on their own goods without prior notice?

The appropriate course of action for a buyer who discovers that the seller bid on their own goods without prior notice is to insist that the item be resold. This practice, known as "shill bidding," is unethical and typically against auction regulations because it misleads buyers into thinking there is genuine competition driving the price up when, in fact, the seller is artificially inflating the bid.

By insisting that the item be resold, the buyer seeks to ensure a fair auction process where all bidders have an equal chance to compete without the influence of the seller's actions. This option reinforces the principle of transparency in auctions and protects the interests of all legitimate bidders who are participating in good faith. Such an action can help restore confidence in the auction process and ensure that the item sells for a fair market value based on genuine demand.

Other options, while potentially appealing, may not address the fundamental issue of shill bidding and could lead to more complicated resolutions. For instance, demanding a refund might not account for the overarching problem of unethical bidding practices. Filing a lawsuit could be a lengthy and costly process, and negotiating a lower price does not rectify the situation or guarantee a fair auction environment. Thus, opting for a resale effectively addresses the violation of auction