Understanding Auctioneer Licensing, Auction Terms, and Regulations in Arkansas, Exams of Public Health

Download Understanding Auctioneer Licensing, Auction Terms, and Regulations in Arkansas and more Exams Public Health in PDF only on Docsity! 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" Auctioneer - 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 - 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 - 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 - 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 - ANSWER--The consignor is the person or entity that consgins goods to an auctioneer. In an auction, the consignor is usually the seller. Contract - ANSWER--A voluntary, legally enforceable agreement between two or more people. 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 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 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 - 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. - 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. - ANSWER--True True/False: Goods being sold at auction must be clearly advertised as to whether it is being sold with or without reserve. - ANSWER--True True/False: The party responsible for paying for the advertising should be identified in the auction listing contract. - ANSWER-- True True/False: Auctions can be publicly advertised before the auction listing contract is signed. - ANSWER--False True/False: Advertising does not have to include the auctioneer's name. - ANSWER--False 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 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 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. 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. Is the auctioneer required to accept any and all bids? - 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? - 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? - 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. 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