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ARKANSAS AUCTIONEER EXAM 2024 ACTUAL EXAM 80 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) | ALREADY GRADED A+ | LATEST VERSION
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True/False: The Arkansas Auctioneers Licensing Board is appointed by vote of the Arkansas General Assembly -------CORRECT ANSWER---------- ----False - The governor shall appoint the members of the Board All auctioneer licenses expire: -------CORRECT ANSWER--------------June 30th True/False: The Arkansas Auctioneers Licensing Board has the final decision in the suspension or revocation of an auctioneer's license. ------- CORRECT ANSWER--------------False - The Auctioneers License Act indicates the "Board shall be subject to the Arkansas Administrative Procedure Act" Auctioneer -------CORRECT ANSWER--------------An auctioneer is any person who offers, negotiates, or attempts to negotiate a listing contract, sale, purchase, or exchange of goods, chattels, merchandise, real or personal property, or of any other commodity which may lawfully be kept or offered for sale by or at public auction, or who sells the same at auction.
Bona Fide -------CORRECT ANSWER--------------The term bona fide means that a person or agency is acting in good faith, without dishonesty, fraud, or deceit. In relation to an auction, the term is normally used to refer to a bona fide perchaser. Bulk Sale -------CORRECT ANSWER--------------A bulk sale is any transfer that is in bulk and not in the ordinary course of the transferor's business, or a major part of the materials, supplies, merchandise, or other inventory of any business subject to the Bulk Sale Law. Consignee -------CORRECT ANSWER--------------The consignee is a person or agent to whom something, usually goods, is entrusted by others for a purpose. The auctioneer is referred to as the consignee for such goods to be sold at auction. He or she is the person in whose care goods are placed for sale. Consignor -------CORRECT ANSWER--------------The consignor is the person or entity that consgins goods to an auctioneer. In an auction, the consignor is usually the seller. Contract -------CORRECT ANSWER--------------A voluntary, legally enforceable agreement between two or more people. Liens -------CORRECT 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.
Market Value -------CORRECT 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 -------CORRECT ANSWER--------------Intentional acts or behavior involving dishonest, wickedness, depravity, or grave infringement of the good moral sentiment of the community. Reciprocity -------CORRECT 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 -------CORRECT 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? -------CORRECT ANSWER-------------- Brenda Mahoney No-reserve auction/absolute auction -------CORRECT ANSWER-------------- Seller cannot withdraw item after a bid has been received and the item will be sold regardless of price.
With reserve auction -------CORRECT 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 True/False: For an auction to be no reserve or absolute, the goods must not have any liens or encumbrances against it unless all lien holders agree to the unqualified acceptance of the highest bid and the seller has a bona fide intent to transfer ownership of the good regardless of the highest amount -------CORRECT ANSWER--------------True True/False: The seller, or a person acting on behalf of the seller, is allowed to bid on their own items in an auction. -------CORRECT ANSWER------------ --False True/False: Any individual party to the dissolution of any marriage, partnership, or corporation is allowed to bid as an individual entity apart from the selling entity, on goods being sold at auction pursuant to such dissolution. -------CORRECT ANSWER--------------True True/False: Goods being sold at auction must be clearly advertised as to whether it is being sold with or without reserve. -------CORRECT ANSWER- -------------True True/False: The party responsible for paying for the advertising should be identified in the auction listing contract. -------CORRECT ANSWER------------ --True
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 -------CORRECT ANSWER--------------(D) All three of the items are important elements of the auction listing contract. What is a bulk transfer? -------CORRECT 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? -------CORRECT ANSWER--------------A person who makes a transfer or conveyance of property What does the transferor need to do to prepare for a bulk transfer? ------- CORRECT ANSWER--------------Furnish a list of creditors and assist in the preparation of a schedule of the property to be sold. What does the auctioneer need to do to prepare for a bulk transfer? ------- CORRECT 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: ------- CORRECT 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: ------- CORRECT 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: ------- CORRECT 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: ------- CORRECT 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;
Who is the purchaser in an auction? -------CORRECT ANSWER-------------- The purchaser is the highest bidder. True/False: Auctioneers are not allowed to refuse a bid. -------CORRECT ANSWER--------------False; the auctioneer may refuse any bid without giving a reason for refusal. If the highest bidder doesn't want an item, can it be resold? ------- CORRECT ANSWER--------------Yes, if both buyer and seller agree. What should be done if a bid is made as the hammer falls? ------- CORRECT 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? -------CORRECT 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. Is the auctioneer required to accept any and all bids? -------CORRECT ANSWER--------------No, the auctioneer may reject certain bids. Bids may be rejected that are trifling advances over the preceding bid, or the auctioneer may refuse bids from someone who is inebriated, mentally incompetent, or a minor.
Is it always unethical for a seller to bid on their own property? ------- CORRECT ANSWER--------------No, sellers generally may bid on their own property if the fact that they are doing so has been announced prior to the auction. They may not generally do so otherwise. Partners in a business or divorce settlement doing so as an individual may always bid. What professional communication skills are needed to conduct bid calling at an auction? -------CORRECT ANSWER--------------(a) Inform audience of terms and conditions of sale (b) Property represent property to be sold (c) Convey the bid asking price as well as the bid received to members of their audience (d) Sell property at a pace as to create competition between bidders (e) Control audience as to maintain attention of buyers (f) Convey to audience when property is sold, to whom, and for what price (g) Convey to audience when property is not sold in compliance with reserve conditions of sale (h) Maintain control of support staff while sale is in progress such as ring workers' assistance in displaying property and identifying bids and clerk's recording of sale to ensure that buyer and sale lot number are properly recorded (i) Exercise other sale management responsibilities to the extent assumed under a written agreement. What should the opening statement of an auction contain? -------CORRECT ANSWER--------------(1) Welcome everyone to the auction (2) Introduce yourself as well as your crew members (3) Explain to your customers the reason for the sale and if the sale is forced or voluntary. You may or may not with to introduce the seller. (4) Explain the terms of purchases and if it is free and clear of all liens, debts, and encumbrances. (5) Let the customers know if the items for sale are as is, where is, or if there is any type of guarantee. (6) Explain on purchases made whether they are to be paid in cash, cashier's check, check, credit card, or by whatever means of payment; when payment is to be made on purchases; and if there is a buyer's premium. (7) Explain when they may remove purchased items, and if there are any specific rules in removing those items.
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 -------CORRECT ANSWER--------------Auctioneer doesn't have to sell the goods for the highest bid if it's lower than the reserve amount. Filler words -------CORRECT ANSWER--------------Small sounds or words used to fill in between the bid Bid Catcher/Ringman -------CORRECT ANSWER--------------Takes note of every bid and communicates them to the auctioneer either with hand signals or verbally Lot -------CORRECT ANSWER--------------Refers to an item or group of items that's going up for sale Go on the block -------CORRECT ANSWER--------------When an item goes up for auction, it's said to "go on the block" Provenance -------CORRECT ANSWER--------------The history of ownership of an item, back to when it was first created, if possible
One money -------CORRECT ANSWER--------------A single bid for an entire lot Times the money -------CORRECT ANSWER--------------Bid is for each item in a lot White glove sale -------CORRECT 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 -------CORRECT ANSWER--------------A historical term for a fraudulent bidder who works to raise prices and cheat buyers. Hammer Price -------CORRECT ANSWER--------------The final, successful bid, officially sealed with a bang of the auctioneer's gavel