with a statement or mark upon it, or attached to it, expressing the quantity or quality of the article, or stating the place where it was manufactured, thereby warrants the truth of such representations.

Civil Code, Sections 1772, 1773.

Section 41.-WARRANTY OF PROVISIONS FOR DOMESTIC USE.--By a sale of provisions for domestic use, for immediate consumption, there is a warranty that the provisions are sound and wholesome.

Civil Code, Section 1775.

Section 42.-WARRANTY ON SALE OF GOOD WILL OF BUSINESS.-One who sells the good will of a business thereby warrants that he will not endeavor to draw off any of the customers.

Civil Code, Section 1776.

Auction Sales

Section 43.-AUTHORITY OF AUCTIONEER.-A sale by auction is a sale by public outcry to the highest bidder on the spot. Laws have been passed by the Legislature of California to regulate the authority of auctioneers, and the rights of bidders, and the manner of conducting auction sales. An auctioneer, by the law of California, without special authorization, has authority from the seller only to the extent that he may sell by public auction to the highest bidder; to sell for cash only, except such articles as are usually sold on credit at auction; to warrant the title of his principal to personal property sold by him, and the quality and quantity of the property; to prescribe reasonable rules and terms of sale; to deliver the things sold. upon payment of the price; to collect the price; and to do whatever else is necessary, or proper and usual in the ordinary course of business, for effecting these purposes. An auctioneer will be deemed to have authority from a

bidder at the auction, as well as from the seller, to bind both seller and bidder by a memorandum of the contract, whenever by law the sale must be evidenced by a memorandum in writing.

Civil Code, Sections 1792, 2362, 2363.

Section 44.-WHEN AUCTION SALE IS COMPLETE.-A sale by auction is not complete until the auctioneer publicly announces, by the fall of his hammer, or in some other customary manner, that the thing is sold. Civil Code, Section 1793.

Section 45.-WITHDRAWAL OF BIDS.-Until the public announcement necessary to complete the sale is made by the auctioneer, any bidder may withdraw his bid. The only thing necessary to do in withdrawing a bid is to notify the auctioneer that the bid is withdrawn, before the final announcement of the sale.

Civil Code, Section 1794.

Section 46.-AUCTION SALE UNDER WRITTEN CONDITIONS.-Whenever an auction sale is made under written or printed conditions, the auctioneer must follow such conditions, and has no power to change them by any oral declaration, except that he may modify a condition intended for his own benefit.

Civil Code, Section 1795.

Section

47-AUCTION

SALE WITHOUT

RE

SERVE. Public policy requires that auction sales shall be conducted with the highest good faith, and that neither the auctioneer nor his principal shall be allowed to deceive or impose upon the persons who gather at an auction for the purpose of making bids. It is therefore provided by the law, for the protection of the bidder, that at a sale by auction, announced to be without reserve, the highest bidder in good faith has an absolute right to the completion

of the sale to him. Upon such a sale bids by the seller, or bids by any agent for him, are absolutely void. The public is interested in securing the advantages of fair and just competition among bidders, and in the prevention of favoritism or fraud in any form. The highest bidder in good faith, at a sale without reserve, is entitled to the property, and, if it should appear that the property was in reality knocked down by the auctioneer upon a higher but fraudulent bid in the interest of the seller, a suit can be maintained in the Superior Court to compel the recognition of the rights of the bidder in good faith, and the delivery of the property to him upon payment of the amount of his bid.

Civil Code, Section 1796.

Section 48.-FRAUDS UPON THE BUYER.-Sometimes the seller, for the purpose of increasing the price of the property sold at auction, will employ puffers to bid up the property, thus giving it a fictitious value, and often inducing credulous bidders to increase their bids beyond what they had any idea of offering. The law provides, without any qualification, that the employment of puffers at an auction sale by the seller, without the knowledge of the buyer, is a fraud upon the buyer, which entitles him to rescind his purchase.

Civil Code, Section 1797.

Section 49.-AUCTIONEER'S MEMORANDUM OF SALE BINDS BOTH PARTIES.-When property is sold by auction, an entry made by the auctioneer in his sale book, at the time of the sale, giving the names of the person for whom he sells and the buyer, and describing the thing sold, the price, and the terms of sale, binds both the seller and the buyer, in the same manner as though the memorandum had been made by themselves.

Civil Code, Section 1798.

Deposit of Personal Property

Section 50.-DEPOSIT FOR SAFE KEEPING.-The obligations of one who receives personal property on deposit are fixed by statute. When personal property is deposited with one for safe keeping, the person receiving the deposit is bound to return the identical thing deposited with him; he is bound to use ordinary care in the safe keeping of the property, and if, by his gross carelessness or neglect, the thing deposited with him is lost or injured, he is liable to the depositary for its value.

Section 51.-DEPOSIT FOR EXCHANGE.-A deposit for exchange is one in which the depositary is bound to return to the depositor, not the identical thing deposited, but something corresponding in kind to it. Where money is received on deposit, or any article which is mingled with the depositary's property of a like kind, and not expected to be returned to the depositor in the identical thing deposited, the depositor becomes a creditor of the other party, to the amount of the money or value of other property deposited.

Civil Code, Sections 1818, 1878.

Section 52.-OBLIGATIONS OF THE DEPOSITARY.-The depositary must deliver the property to the person for whose benefit it was deposited, on demand, unless he has a lien upon it. He is not bound to deliver the property without a demand being made for it, even where the deposit is made for a specified time. A depositary must deliver the thing deposited at his residence or place of business, as may be most convenient for him. If a thing deposited is owned jointly or in common, by persons who cannot agree upon the manner of its delivery, the depositary may deliver to each his proper share, if this can be done without injury to the thing deposited.

Civil Code, Sections 1822, 1823, 1824, 1827.

Section 53.-THINGS WHICH WILL EXCUSE DELIVERY.-There are some circumstances which will excuse delivery, even after demand is made. A third person may claim to be the real owner of the property, and establish his claim by law; or litigation may ensue between the depositor and another person claiming to be the real owner of the property, in which the court will enjoin the delivery or take the property into its own hands pending the litigation. Whenever any proceedings are taken adverse to the interest of the depositor, or adverse to the interest of the person for whose benefit the deposit was made, the person who received the deposit must give prompt notice of such proceedings to the depositor or other person beneficially interested. The depositary may also acquire a lien upon the property, which will excuse delivery; and generally he will have a lien upon the property, when he has performed services about the property, or incurred expense in its keeping or preservation, for the value of his services and the amount of his expenses.

Storage of Personal Property

Section 54.-STORAGE.-Where a person deposits personal property with another and agrees to pay him a compensation, it is called storage. Under this designation is included a variety of business transactions wherein one person takes charge and custody of the goods of another for hire.

Section 55-CARE TO BE TAKEN OF THING DEPOSITED.-One who takes goods on storage for hire must use at least ordinary care for their preservation, and is liable for damages by reason of failure to perform his obligation in this respect.

Storage in Warehouses

Section 56.-WAREHOUSE RECEIPTS.-The most common form of storage known to business is that where