E. Cobham Brewer 1810–1897. Dictionary of Phrase and Fable. 1898.
Bad Lot (A).
A person of bad moral character, or one commercially unsound. Also a commercial project or stock of worthless value. The allusion is to auctioneering slang, meaning a lot which no one will bid for. So an inefficient soldier is called one of the Queen’s bad bargains.
