Business Law 5th Edition by David Twomey ,Marianne Jennings ,Stephanie Greene

Exercise 8

James Durham runs an art gallery. He has several paintings from unknown artists that he has listed for sale. The paintings always sell at his weekly auction for $20,000 to $50,000 above what James believes them to be worth. James learns that the bidders at the auctions are employed by an olive distributor located near the shipping yards of the city. What concerns should Durham have about the art, the bidders and the large purchase prices