Download ARKANSAS AUCTIONEER EXAM 2025/2026 Accurate Real Exam Questions and Correct Answers and more Exams Law in PDF only on Docsity!
ARKANSAS AUCTIONEER EXAM 2025 / 2026 Accurate
Real Exam Questions and Correct Answers
Who is the purchaser in an auction? - ANSWER--The purchaser is the highest bidder. True/False: Auctioneers are not allowed to refuse a bid. - ANSWER-- False; the auctioneer may refuse any bid without giving a reason for refusal. What does the auctioneer need to do to prepare for a bulk transfer? - ANSWER--Receive and retain list of creditors and schedule of property, give creditors notice of auction by certified mail 10 days before it occurs, and assure net proceeds of the auction are applied. Failure to do these things renders the auctioneer liable to the creditors. The term "false, misleading, or deceptive acts or practices" includes: - ANSWER--Passing off goods or services as those of another; causing confusion or misunderstanding as to the source, sponsorship, approval, or certification of goods or services; causing confusion or misunderstanding as to affiliation, connection, or association with or certification by another The term "false, misleading, or deceptive acts or practices" includes: - ANSWER--Using deceptive representations or designations of geographic origin in connection with goods or services; representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval, status, affiliation, or connection which he does not; The term "false, misleading, or deceptive acts or practices" includes: - ANSWER--Representing that goods are original or new if they are deteriorated, reconditioned, reclaimed, used or secondhand; representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style of model, if they are of another; disparaging the goods, services, or business of another by false or misleading representation of facts; The term "false, misleading, or deceptive acts or practices" includes: - ANSWER--Advertising goods or services with intent not to sell them as advertised; advertising goods or services with intent not to supply a reasonable expectable public demand, unless the advertisements disclosed a limitation of quantity; making false or misleading statements of fact concerning the reasons for, existence of, or amount of price reductions;
True/False: In a sale by auction, if goods are put up in lots, eat lot is the subject of a separate sale. - ANSWER--True When is a sale by auction complete? - ANSWER--When the auctioneer so announces by the fall of the hammer or in other customary manner. What happens if a bid is made while the hammer is falling? - ANSWER-
- The auctioneer in their discretion may reopen the bidding or declare the goods sold under the bid on which the hammer was falling. True/False: A sale by auction is without reserve unless the goods are in explicit terms put up with reserve. - ANSWER--False; by default auction sales are with reserve. How long does a bidder have retract their bid? - ANSWER--Until the auctioneer's announcement of completion of the sale. A retraction does not revive any previous bid. True/False: If the auctioneer knowingly receives a bid on the seller's behalf or the seller makes or procures such a bid, and notice has not been given that liberty for such bidding is reserved, the buyer may at his option avoid the sale or take the goods at the price of the last good faith bid prior to the completion of the sale. - ANSWER--True If the highest bidder doesn't want an item, can it be resold? - ANSWER-
- Yes, if both buyer and seller agree. What should be done if a bid is made as the hammer falls? - ANSWER-- The auctioneer decides what to do. They may reopen the bidding to all, reopen the bidding between the two final bidders, or accept the bid made prior to the hammer's fall When may the bidder retract their bid? - ANSWER--A bidder may legally retract a bid anytime before the hammer falls. The sale is considered complete when the auctioneer declares the items sold. In real estate auctions, however, the agreement between buyer and seller is not valid until the purchase and sales contract is reduced to writing.
How long must a copy of an auction contract be kept? - ANSWER-- 3 years after the auction Buyer's premium - ANSWER--An advertised percentage of the high bid or flat fee added to the high bid to determine the total contract price to be paid by the buyer. Prima Facie - ANSWER--A legal term that indicates evidence is sufficient to establish an allegation as reasonably probably; a strong appearance of a wrongful act. Fair Market Value - ANSWER--The estimated price that a willing seller will take for goods and a willing buyer will give, if neither buyer nor seller is under any compulsion or undue influence to buy or sell. Absolute auction - ANSWER--A type of auction where the sale is awarded to the highest bidder. Absolute auctions do not have a reserve price which sets a minimum required bid for the item to be sold. One type of absolute auction relates to foreclosed properties, where the winning bid acquires the foreclosed property. This is opposed to a lender confirmation auction, where the lender must approve the bid in order to complete the transaction. I: An absolute auction can occur in various venues including the foreclosure marketplace, the online marketplace (such as eBay.com) or live auction events. In this type of auction, the highest bidder "wins" the item, whether it is real estate property or any other type of product. Absolute auctions are often implemented where there is an immediate demand to sell an item. The seller or anyone acting on their behalf may not bid. Auction with reserve - ANSWER--Auctioneer doesn't have to sell the goods for the highest bid if it's lower than the reserve amount. Filler words - ANSWER--Small sounds or words used to fill in between the bid Bid Catcher/Ringman - ANSWER--Takes note of every bid and communicates them to the auctioneer either with hand signals or verbally Lot - ANSWER--Refers to an item or group of items that's going up for sale Go on the block - ANSWER--When an item goes up for auction, it's said to "go on the block"
Provenance - ANSWER--The history of ownership of an item, back to when it was first created, if possible One money - ANSWER--A single bid for an entire lot Times the money - ANSWER--Bid is for each item in a lot White glove sale - ANSWER--An auction in which every single lot sells. This rare occurrence is so called because of an old tradition in which the auctioneer was bestowed with a pair of white gloves. Peter Funk - ANSWER--A historical term for a fraudulent bidder who works to raise prices and cheat buyers. Hammer Price - ANSWER--The final, successful bid, officially sealed with a bang of the auctioneer's gavel True/False: The Arkansas Auctioneers Licensing Board is appointed by vote of the Arkansas General Assembly - ANSWER--False - The governor shall appoint the members of the Board All auctioneer licenses expire: - ANSWER--June 30th True/False: The Arkansas Auctioneers Licensing Board has the final decision in the suspension or revocation of an auctioneer's license. - ANSWER--False - The Auctioneers License Act indicates the "Board shall be subject to the Arkansas Administrative Procedure Act"
Liens - ANSWER--Liens are adverse claims against property which may occur when the property has been used as collateral for a debt by the property owner or when a legal interest is created upon non- payment of a debt such as taxes or contractors bills. Estates - ANSWER--The auctioneer often deals with the sale of both real and personal property in the settlement of an estate. In working with estate auctions, certain terms are important. Estate Administrator/Administratrix - ANSWER--The administrator/administratrix of an estate is the person appointed by the court to oversee the settling of an estate when there is no will or when the person named in a will cannot or will not serve, or when the will names no executor or executrix. Estate Executor/Executrix - ANSWER--The executor/executrix of an estate is the person named in the will to carry out its provisions. Goods - ANSWER--Includes chattels, merchandise, personal property, or commodities of any form or type, which may lawfully be kept or offered for sale. Chattels - ANSWER--Chattels are moveable personal property such as furniture, automobiles, and livestock. This excludes real estate. Commodities - ANSWER--Commodities may or may not be chattels and include valuable interest in agricultural products, silver, gold, and other products customarily sold or traded in commercial markets. Market Value - ANSWER--The market value is the price that a willing seller will take for goods and a willing buyer will give if neither buyer nor seller is under any compulsion or undue influence to buy or sell.
Mortal Turpitude - ANSWER--Intentional acts or behavior involving dishonest, wickedness, depravity, or grave infringement of the good moral sentiment of the community. Reciprocity - ANSWER--In the professional auctioneering context, reciprocity is the mutual recognition by two or more licensing agencies of the validity of the licenses issued by any of them. An auctioneer licensed in Arkansas, for example, will be granted a license in any state with which it has reciprocity simply by requesting the licensing and paying any necessary fees. Spouse - ANSWER--A spouse is a husband or wife. Mr. Sam Turner died last year leaving a will written by attorney John Grice and witnessed by Tom Turner and Mary Snelling. The will divided Sam's property equally among his three children and named the oldest child, Brenda Mahoney, to see that its provisions were carried out and the necessary business and legal arrangements completed. Who is the executor/executrix of the estate? - ANSWER--Brenda Mahoney No-reserve auction/absolute auction - ANSWER--Seller cannot withdraw item after a bid has been received and the item will be sold regardless of price. With reserve auction - ANSWER--The owner or auctioneer may set a minimum price that will be accepted for an item. In normal auction practice, an auction is assumed to be "with reserve" unless otherwise stated
What is an escrow account and what is it used for? - ANSWER--A separate account used to hold the funds of others, money from several auctions may be placed in it at one time. What does it mean to sell an item "as is"? - ANSWER--It means the auctioneer does not warrant the item's authenticity or condition as long as the auctioneer or assistants make no other comments about the item that could be perceived as promises about its authenticity or condition. True/False: If two bidders think they have the final bid after the hammer falls, the auctioneer is required by law to reopen the bidding. - ANSWER--False; the auctioneer may give the item to the bidder originally recognized as having the high bid, or reopen the bidding generally, or between two contending bidders. What are the elements of a valid contract? - ANSWER--The buyer and seller must be of legal age, not intoxicated or mentally incompetent, and duly authorized to enter into a legal contract if acting for a partnership or corporation; there must be an offer and acceptance; the promises exchanged by the parties must also be based on a "good and valuable consideration", a consideration does not have to be money but it is generally something of value that is being exchanged for something specified in the contract; the actions in the contract must be legal, contracts must be in writing; the contract must be dated; must state if the seller has liens against the property; include the auctioneer commission rate; who pays for advertising; if there is a reserve; who will collect bad checks; both parties must sign. In signing an auction contract, the auctioneer should state: (A) The percentage of commission and any other applicable fees or charges (B) The name of the business (C) If it is selling with or without a reserve price (D) All of the above - ANSWER--(D) All three of the items are important elements of the auction listing contract.
What is a bulk transfer? - ANSWER--It is any transfer in bulk and not in the ordinary course of the transferor's business, such as the sale of a business's entire inventory to a single buyer. What is a transferor? - ANSWER--A person who makes a transfer or conveyance of property What does the transferor need to do to prepare for a bulk transfer? - ANSWER--Furnish a list of creditors and assist in the preparation of a schedule of the property to be sold.
