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GA AUCTION STUDY GUIDE EXAM
200 QUESTIONS WITH DETAILED
VERIFIED ANSWERS 100% CORRECT
ANSWERS ALREADY GRADED A+
"When you receive your auctioneers license you can conduct auctions anywhere in Georgia regardless of local restrictions. T or F? - CORRECT ANSWER=> False" "Consignee - CORRECT ANSWER=> The person who receives property from somebody else to sell at an auction" "A Georgia auction license is not required to auction for a non-profit organization when the organization:
- CORRECT ANSWER=> Obtains a letter of exemption" "The Georgia Auction Education, Research, and Recovery Fund - CORRECT ANSWER=> Must maintain a minimum balance of 100,000, limits it's liability to 10,000 per claim, charges each new license $150, revokes the license of any auctioneer causing a claim to be paid from the fund." "The Georgia Auction Commission is made up of 5 auctioneers and 1 person associated with auctions. T or F? - CORRECT ANSWER=> True" "A valid contract must include: - CORRECT ANSWER=> An offer by one of the parties, an acceptance of the offer by another party, and consideration" "A corporation can be exempt from licensing by - CORRECT ANSWER=> Filing an application of exemption with Georgia Auction Commission, have a licensed auctioneer supervise operation, have a licensed auctioneer controls funds in his escrow account." "Auctioneers are required to deposit funds belonging to others in their escrow account when: - CORRECT ANSWER=> The total sale exceeds $2,000, the sale is settled after 48 hours of sale" "An auctioneer is responsible for having their name and license including in all advertising of an auction. T or F? - CORRECT ANSWER=> True"
"Auctioneers must issue closing statements and include: - CORRECT ANSWER=> Name and address of seller, price property sold for, date and location of sale, kept on file for 3 years, inventory of property sold, date seller was paid." "A sale advertised as an "auction" means - CORRECT ANSWER=> Bidder may retract their bid any time prior to the auctioneering saying sold, and the auctioneer may refuse any and all bids" "A penalty fee of $___ will be imposed for auctioneering without a license - CORRECT ANSWER=> $250" "In Georgia, sales tax must be charged on personal property sold to the consumer at: - CORRECT ANSWER=> An estate sale held on site, a public auction holding regular sales, inventory liquidations" "A sale advertised as "absolute auction" means - CORRECT ANSWER=> Each item must be sold to high bidder, bidder may retract their bid any time prior to the auctioneer saying sold" "At an absolute auction, the only legal way to protect the price of the property is to have a by-bidder to bid the price up. T or F? - CORRECT ANSWER=> False" "Absolute Auction - CORRECT ANSWER=> If you advertise an auction that "everything will be sold to the bidder regardless of the price."" "Contract - CORRECT ANSWER=> Legal agreement between competent parties" "Executed contract - CORRECT ANSWER=> A signed contract" "Negotiation of a contract - CORRECT ANSWER=> Must be the intent to create a legal obligation, terms must be definite and complete, must address price, property description, and delivery, must include parties to the contract" "The Statue of Frauds requires that auction contracts must be written. T or F? - CORRECT ANSWER=> True" "Common law requires that auction contracts must be written. T or F? - CORRECT ANSWER=> False" "Parol evidence in a contract may be abided by, but is not enforceable in a court of law. T or F? - CORRECT ANSWER=> True" "Compliance with the statue of frauds requires - CORRECT ANSWER=> Names of parties to the contract, statement of related subject matter, all terms and conditions, signature of the parties"
T or F - CORRECT ANSWER=> False" "A breach of contract situation occurs when - CORRECT ANSWER=> A violation of terms of the contract agreement occurs" "Remedies for breach of contract may be - CORRECT ANSWER=> Damages that are Compensatory, punitive, nominal, or liquidated" "Punitive damages for breach of contract - CORRECT ANSWER=> Payment to punish the party breaching the contract" "When either the auctioneer of the seller violates the conditions of the contract either party can be charged with breach of contract. T or F? - CORRECT ANSWER=> True" "Failure to disclose agency relationship may lose your auction license. T or F - CORRECT ANSWER=> True" "An oral contract may be permitted to establish agency relationships. T or F - CORRECT ANSWER=> False" "Client - CORRECT ANSWER=> The seller in an agency relationship" "In a fiduciary relationship, the auctioneer is to place the welfare of their client ahead of their own. T or F - CORRECT ANSWER=> True" "An auctioneer may represent both the seller and buyer after full disclosure. T or F - CORRECT ANSWER=> True" "Auctioneer is not responsive for wrongdoings of seller by disclosure of agency relationship. T or F - CORRECT ANSWER=> True" "Quickly dropping the bid to a friend is not a violation of the seller/agency relationship. T or F - CORRECT ANSWER=> False" "Auctioneer should it disclose any harmful information about the seller. T or F - CORRECT ANSWER=> True" "Misrepresentation by the auctioneer on behalf of seller may cause civil and criminal liability to the seller. T or F - CORRECT ANSWER=> True"
"Furnishing public information to the buyer may be violation of the agency relationship. T or F - CORRECT ANSWER=> False" "Duties of the seller include compensating the auctioneer according to terms of the contract. T or F - CORRECT ANSWER=> True" "An auction contract establishes a special agency relationship which is the same as a power of attorney. T or F - CORRECT ANSWER=> True" "Material misrepresentations made by and auctioneer constitute fraud. T or F - CORRECT ANSWER=> True" "An auctioneer who designs with another (buyer) to defraud (seller) third party is guilty if fraud. T or F - CORRECT ANSWER=> True" "Operating in a negligent manner is a form of fraud. T or F - CORRECT ANSWER=> True" "And attempt to fix commission is a violation of the Sherman-Clayton Act. T or F - CORRECT ANSWER=> True" "An auctioneer may receive commission from both the seller and buyer but only with full disclosure. T or F - CORRECT ANSWER=> True" "When soliciting an auction contract, you should always tell the seller their property will bring as much as they think it will. T or F - CORRECT ANSWER=> False" "Sales tax must be charged before the buyers premium is added to the bid, thus increasing your profits. T or F - CORRECT ANSWER=> False" "Completion of the sale are auction is when: - CORRECT ANSWER=> The auctioneer says, "SOLD."" "Chapter 7 bankruptcy is a liquidation of a debtor's assets. T or F - CORRECT ANSWER=> True" "The seller in a bulk transfer must furnish a list if creditors to the Auctioneer before the contract is signed. T or F - CORRECT ANSWER=> True" "An auctioneer who has not followed legal procedures may be responsible for a crime involving firearms sold at auction.
"As a qualifying veteran taking the Georgia Auction Exam, you ate allowed a 5 point advantage. Thus, you must score 70% to pass. T or F - CORRECT ANSWER=> False" "As a licensed Auctioneer, you are entitled to a 2% referral fee on all deals you set up with a real estate agent even though you are not licensed in real estate. T or F - CORRECT ANSWER=> False" "You can demand an opening bid & refuse small increment bids at a reserve auction. - CORRECT ANSWER=> True" "An auctioneer may be allowed to group or divide lots at an auction if: - CORRECT ANSWER=> Prior notice has been given" "As a licensed Auctioneer for hire to the public, you are required to accept a consignment you suspect to be stolen. T or F - CORRECT ANSWER=> False" "A contract between an auctioneer and mentally incompetent person is still enforceable by either party. T or F - CORRECT ANSWER=> False" "An auctioneer as a professional license is governed by both laws and ethics. T or F - CORRECT ANSWER=> True" "A valid contract must include - CORRECT ANSWER=> Date contract is signed, date of performance, consideration" "Ethics may be defined as - CORRECT ANSWER=> Honest and fair business dealings" "After completing this course and passing the state exam, but before you receive your license , if you contract an auction and the seller fails to honor it, can you sure and recover losses? Y or N - CORRECT ANSWER=> No" "The terms "antique" and "collectible" mean the same thing. T or F - CORRECT ANSWER=> False" "The term "estate auction" always refers tot he sale of property. T or F - CORRECT ANSWER=> True" "Encumbrance - CORRECT ANSWER=> A claim or lien on property" "If a bidder premium is chargers at the auction, it must be announced at the beginning of the sale.
T or F - CORRECT ANSWER=> False" "Georgia auction law requires you to have a writren, signed contract to legally operate an auction. T or F - CORRECT ANSWER=> True" "Any auction generating gross sales below $2000 is not required to deposit proceeds into an escrow account. T or F - CORRECT ANSWER=> False" "An auctioneers license must be displayed or made available at each auction. T or F - CORRECT ANSWER=> True" "The principal auctioneer must include their name and license in all advertising Of an auction. T or F - CORRECT ANSWER=> True" "The auctioneer is allowed to have three "NO SALES" during the duration. Of any absolute auction. T or F - CORRECT ANSWER=> False" "In conducting an absolute auction any item may be withdrawn if no bids have been received within a reasonable time. T or F - CORRECT ANSWER=> True" "The Georgia auctioneer commission is composed of six auctioneers and one other person not connected with the auction business. T or F - CORRECT ANSWER=> False" "An unlicensed person can conduct auctions by being supervised by a licensed auctioneer. T or F - CORRECT ANSWER=> False" "In an agency relationship you are entitled to receive compensation if - CORRECT ANSWER=> You are a legally licensed Auctioneer" "An unlicensed person can conduct auctions I livestock legally without being licensed T or F - CORRECT ANSWER=> True" "The biennial license fee for an auctioneer is $ T or F - CORRECT ANSWER=> False" "A Copy of an auction contract must be held in file for 3 years T or F - CORRECT ANSWER=> True" "Misrepresentation of property sold at an auction is considered a major violation of auction law.
"A license auctioneer may or may not choose to hold a company license. T or F - CORRECT ANSWER=> True" "A licensed auctioneer is responsible for all risks of an exempt auction company. T or F - CORRECT ANSWER=> True" "The principal auctioneer must issue a closing statement for all auctions that they conduct. T or F - CORRECT ANSWER=> True" "The principal auctioneer is responsible for including their name and license number and/or the auction company's name and license number in all advertising of an auction. T or F - CORRECT ANSWER=> True" "Auctioneers and auction companies both must maintain an escrow account. T or F - CORRECT ANSWER=> " "Auctioneer must deposit al monies coming into their possession into an escrow account. T or F - CORRECT ANSWER=> True" "You must include $100 with your application to sit for the auctioneers examination T or F - CORRECT ANSWER=> False" "Late fees for late renewal if auctioneers license will require a $10 penalty T or F - CORRECT ANSWER=> True" "Auctioneering without a license will result in a $___ penalty - CORRECT ANSWER=> $250" "The education, research, and recovery fund requires a contribution of $250. T or F - CORRECT ANSWER=> False" "A licensed auctioneer who owns his own company is a full time auctioneer. T or F - CORRECT ANSWER=> True" "A licensed auctioneer who works exclusively for an auction company is a full time auctioneer. T or F - CORRECT ANSWER=> True" "A full time auctioneer who exempts a company and works exclusively for this company is the most likely to lose their license. T or F - CORRECT ANSWER=> True" "Auction records must be kept in file for 7 years. T or F - CORRECT ANSWER=> False"
"The statute of Frauds requires that auction contracts must be written. T or F - CORRECT ANSWER=> True" "When you receive your auction license you can auction any personal property anywhere in Georgia regardless to local restrictions. T or F - CORRECT ANSWER=> " "Failure to maintain an escrow account is grounds for revocation of auction license. T or F - CORRECT ANSWER=> True" "Escrow accounts must be accessible to the auction commission for inspection. T or F - CORRECT ANSWER=> True" "Auction licenses expire at the end of each odd numbered year. T or F - CORRECT ANSWER=> False" "Advertising of an "auction" is considered to be a reserve auction unless advertised otherwise. T or F - CORRECT ANSWER=> True" "Auctioneers should have product knowledge because: - CORRECT ANSWER=> The seller will know that the auctioneer has done his due diligence, auctioneer will be prepared to ask for a reasonable opening bid, auctioneer will prove credibility with this knowledge" "If you sell an item after the auction & you found that it was misrepresented, what do you do? - CORRECT ANSWER=> Recall the item and refund the money." "To authenticate antiques at auction, you should: - CORRECT ANSWER=> Get an experts opinion" "An ordinance may be; - CORRECT ANSWER=> A rule established by a government authority" "A sale advertised as an "auction" means; - CORRECT ANSWER=> Items sold with reserve" "As a license auctioneer you are; - CORRECT ANSWER=> An agent of the seller" "What must be included in an auction contract? - CORRECT ANSWER=> Date of sale, sellers name, commission rate charge, buyers premium if charged" "A bid assistant should: - CORRECT ANSWER=> Relay bids to the auctioneer" "The auctioneer may refuse any bid at an absolute auction after full disclosure to all interested parties - CORRECT ANSWER=> False"
"Seller - CORRECT ANSWER=> In the contracting to operate a consignment auction this determine the rules of the sale between the auctioneer and the _____" "If a public auction your seller directs you to disregard ethical behavior, you should: - CORRECT ANSWER=> Avoid the seller" "A real estate deed is a document to determine; - CORRECT ANSWER=> Convey land ownership" "An auctioneers license number must be displayed on: - CORRECT ANSWER=> All advertising of all auctions" "An auctioneers first agency obligation is to - CORRECT ANSWER=> Sellers" "How should an auctioneer dress? - CORRECT ANSWER=> Comparable with your bidders" "The best chant for an auctioneer is to be: - CORRECT ANSWER=> Easily understood" "liquidation auction - CORRECT ANSWER=> Selling remaining inventory at auction" "The Auction Commission can regulate the amount of commission you can charge to sell real estate. T or F - CORRECT ANSWER=> False" "Registration of bidders at an auction - CORRECT ANSWER=> Creates a mailing list" "If a licensed Auctioneer allows an unlicensed person to call their auction, both parties have violated the law. T or F - CORRECT ANSWER=> True" "A chapter 11 bankruptcy is a debtor in possession who has filed for reorganization. T or F - CORRECT ANSWER=> True" "At an absolute auction you can legally - CORRECT ANSWER=> Withdraw and item if no bid is received within a reasonable time." "At a court ordered auction conducted by an attorney, the attorney must hold an Auctioneers license. T or F - CORRECT ANSWER=> True" "Principal - CORRECT ANSWER=> In an agency situation, when a seller authorizes you to sell their property." "A closing statement - CORRECT ANSWER=> 1. Must include name and address of seller, price property sold for, date and location where sale was conducted, and date the seller was paid."
"How long must a closing statement be kept on record? - CORRECT ANSWER=> 3 years" "Real Property - CORRECT ANSWER=> Land with permanent building thereon" "Example of surcharge at an auction - CORRECT ANSWER=> 10% buyer's premium" "An auctioneer may bid on behalf of the seller during the auction when: - CORRECT ANSWER=> Prior notice has been given" "Federal laws regulating sell of firearms at an auction apply when? - CORRECT ANSWER=> Always apply" "Personal property is anything that can be moved. True or False? - CORRECT ANSWER=> " "A title to real property requires: - CORRECT ANSWER=> A copy of the deed to be transferred." "A lein on personal property is not enforceable and prohibits property being transferred before the lein is settled. T or F? - CORRECT ANSWER=> False" "The use of false bidder, by bidders, cappers, or shills to raise the bid may: - CORRECT ANSWER=> Lead to revocation of your license" "Mechanic Lein - CORRECT ANSWER=> Applies to autos repairs, attaches to property that labor and materials went into, and can attach to either real or personal property." "Real property tax lean - CORRECT ANSWER=> Taking precedence over all" "Valid Auction Contract's may: - CORRECT ANSWER=> Be a legal agreement between competent parties" "If a buyer's premium is charged at an auction must: - CORRECT ANSWER=> Be included in the signed bidder contract" "As-is means - CORRECT ANSWER=> There are no guarantees." "At an absolute auction, the auctioneer may withdraw property when - CORRECT ANSWER=> No bid has been received within a reasonable time" "An appraisal of personal property is - CORRECT ANSWER=> An opinion of value, normally not required to be made by certified appraiser, and estimates value, documented."
