(1) Where a sale by auction is not notified to be subject to a right to bid on behalf of the seller, it shall not be lawful for the seller to bid himself or herself or to employ any person to bid at such sale, or for the auctioneer knowingly to take any bid from the seller or any such person. Any sale contravening this rule may be treated as fraudulent by the buyer.
(2) Where sale by auction is notified to be subject to a reserve price, if the highest bid is lower than the reserve, no contract is concluded, and the bidder has no right of action in such a case.