Georgia Auction Study Guide Exam Questions and Answers, Exams of Accounting

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GA Auction Study Guide Exam Questions

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1. An auction listing contract --- correct answer --- Must be written to be enforceable
2. Seller --- correct answer --- In the contracting to operate a consignment auction this determine the rules of the sale between the auctioneer and the
3. If a public auction your seller directs you to disregard ethical behavior, you should --- correct answer --- Avoid the seller
4. A real estate deed is a document to determine; --- correct answer --- Convey land ownership
5. An auctioneers license number must be displayed on --- correct answer --- All advertising of all auctions
6. An auctioneers first agency obligation is to --- correct answer --- Sellers
7. How should an auctioneer dress? --- correct answer --- Comparable with your bidders
8. The best chant for an auctioneer is to be --- correct answer --- Easily understood
9. liquidation auction --- correct answer --- Selling remaining inventory at auction
10. The Auction Commission can regulate the amount of commission you can charge to sell real estate.

T or F --- correct answer --- False

11. Registration of bidders at an auction --- correct answer --- Creates a mailing list
12. If a licensed Auctioneer allows an unlicensed person to call their auction, both parties have violated the law.

T or F --- correct answer --- True

13. A chapter 11 bankruptcy is a debtor in possession who has filed for reorganization.

T or F --- correct answer --- True

14. At an absolute auction you can legally --- correct answer --- Withdraw and item if no bid is received within a reasonable time.
15. At a court ordered auction conducted by an attorney, the attorney must hold an Auctioneers license.

T or F --- correct answer --- True

16. Principal --- correct answer --- In an agency situation, when a seller authorizes you to sell their property.
17. 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.
18. How long must a closing statement be kept on record? --- correct answer --- 3 years
19. Real Property --- correct answer --- Land with permanent building thereon
20. Example of surcharge at an auction --- correct answer --- 10% buyer's premium

21. An auctioneer may bid on behalf of the seller during the auction when - -- correct answer --- -

Prior notice has been given

22. Federal laws regulating sell of firearms at an auction apply when? --- correct answer --- Always apply
23. Personal property is anything that can be moved. True or False? --- correct answer ---
24. A title to real property requires --- correct answer --- A copy of the deed to be transferred.
25. A lein on personal property is not enforceable and prohibits property being transferred before the lein is settled.

T or F? --- correct answer --- False

26. The use of false bidder, by bidders, cappers, or shills to raise the bid may --- correct answer --- Lead to revocation of your license
27. 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.
28. Real property tax lean --- correct answer --- Taking precedence over all
29. Valid Auction Contract's may --- correct answer --- Be a legal agreement between competent parties
30. If a buyer's premium is charged at an auction must --- correct answer -- - Be included in the signed bidder contract
31. As-is means --- correct answer --- There are no guarantees.

32. At an absolute auction, the auctioneer may withdraw property when --- correct answer --- No bid has been received within a reasonable time
33. An appraisal of personal property is --- correct answer --- An opinion of value, normally not re- quired to be made by certified appraiser, and estimates value, documented.
34. When a buyer must sign a sales tax exempt form - -- correct answer --- When buying personal property for resale, to avoid paying sales tax
35. Buyer's premium --- correct answer --- Additional percentage charged to bidder above their bid
36. Any interest accumulated in an auctioneer's escrow account belongs to who? --- correct answer --- It is dispersed according to terms of the contract
37. Auction advertising must include --- correct answer --- Name and license of auctioneer
38. Authority of the auction commission is limited to --- correct answer --- Regulate issuance of licenses, revoke, censure, of suspend licenses
39. Sale of the contents of self-contained storage units is exempt from auction law requirements if --- correct answer --- Sold by owner or agent of units holding a lein on contents after default of rent payments
40. An auctioneer drawing a personal property estate auction contract must-

--- correct answer --- Be written contract before the sale

41. Making substantial misrepresentations from the auction is grounds for revocation of auction license.

T or F? --- correct answer --- True

42. Failure to maintain an escrow account is grounds for revocation of auction license.

T or F? --- correct answer --- True

43. When you receive your auctioneers license you can conduct auctions anywhere in Georgia regardless of local restrictions.

T or F? --- correct answer --- False

44. Consignee --- correct answer --- The person who receives property from somebody else to sell at an auction
45. A Georgia auction license is not required to auction for a non-profit orga- nization when the organization --- correct answer --- Obtains a letter of exemption
46. The Georgia Auction Education, Research, and Recovery Fund --- correct answer --- Must main- tain 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.
47. The Georgia Auction Commission is made up of 5 auctioneers and 1 person associated with auctions.

T or F? --- correct answer --- True

48. A valid contract must include --- correct answer --- An offer by one of the parties, an acceptance of the offer by another party, and consideration
49. 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.

50. 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
51. An auctioneer is responsible for having their name and license including in all advertising of an auction.

T or F? --- correct answer --- True

52. Auctioneers must issue closing statements and include --- correct answer --- Name and ad- dress 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.
53. 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
54. A penalty fee of $ will be imposed for auctioneering without a license-

--- correct answer --- $

55. 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
56. 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
57. 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

58. Absolute Auction --- correct answer --- If you advertise an auction that "everything will be sold to the bidder regardless of the price."
59. Contract --- correct answer --- Legal agreement between competent parties
60. Executed contract --- correct answer --- A signed contract
61. 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
62. The Statue of Frauds requires that auction contracts must be written. T or F? --- correct answer --- True
63. Common law requires that auction contracts must be written. T or F? - -- correct answer --- False
64. Parol evidence in a contract may be abided by, but is not enforceable in a court of law.

T or F? --- correct answer --- True

65. 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
66. A contract to perform an action which is impossible to performs is a valid contract.

T or F? --- correct answer --- False

67. Which essential element of a valid contract is not required to prove legal capacity? --- correct answer --- A citizen of Georgia

68. Misrepresentations and mistakes both affect the validity of a contract. T or F? --- correct answer --- True
69. Acceptance of an offer is one of the essential elements if a valid contract. When your bidder rejects his bid prior to completing the sale, the backup bidder is obligated to accept the last bid received.

T or F? --- correct answer --- False

70. Something of value must be received to make a contract binding, "Love and affection" is accepted as a form of consideration.

T or F? --- correct answer --- False

71. Acceptance of an offer by a party influenced under duress or undue influence is not enforceable.

T or F --- correct answer --- True

72. An emancipated minor can enforce a contract. T or F --- correct answer --- True
73. A mentally incompetent person cannot enforce a contract. When can this person enforce a contract? --- correct answer --- When they are adjudged competent by the courts.
74. A void contract was never legal this it was binding. T or F --- correct answer --- True
75. A void able contract is an example of making a contract with a minor, which can be made void at the option of the minor, but not made by the responsible party of the contract.

T or F --- correct answer --- True

76. Requirements of a valid contract are --- correct answer --- Competent parties, mutual agreement, consideration, legal purpose, in writing.
77. A unilateral contract is an agreement between two parties. T or F --- correct answer --- False
78. Written auction contract --- correct answer --- Expressed
79. Auction contracts are usually assignable. T or F --- correct answer --- False
80. A breach of contract situation occurs when --- correct answer --- A violation of terms of the contract agreement occurs
81. Remedies for breach of contract may be --- correct answer --- Damages that are Compensatory, punitive, nominal, or liquidated
82. Punitive damages for breach of contract --- correct answer --- Payment to punish the party breach- ing the contract
83. 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

84. Failure to disclose agency relationship may lose your auction license. T or F --- correct answer --- True
85. An oral contract may be permitted to establish agency relationships. T or F --- correct answer --- False
86. Client --- correct answer --- The seller in an agency relationship
87. In a fiduciary relationship, the auctioneer is to place the welfare of their client ahead of their own.

T or F --- correct answer --- True

88. An auctioneer may represent both the seller and buyer after full disclosure. T or F --- correct answer --- True
89. Auctioneer is not responsive for wrongdoings of seller by disclosure of agency relationship.

T or F --- correct answer --- True

90. Quickly dropping the bid to a friend is not a violation of the seller/agency relationship.

T or F --- correct answer --- False

91. Auctioneer should it disclose any harmful information about the seller. T or F --- correct answer --- True
92. Misrepresentation by the auctioneer on behalf of seller may cause civil and criminal liability to the seller.

T or F --- correct answer --- True

93. Furnishing public information to the buyer may be violation of the agency relationship.

T or F --- correct answer --- False

94. Duties of the seller include compensating the auctioneer according to terms of the contract.

T or F --- correct answer --- True

95. An auction contract establishes a special agency relationship which is the same as a power of attorney.

T or F --- correct answer --- True

96. Material misrepresentations made by and auctioneer constitute fraud. T or F --- correct answer --- True

97. An auctioneer who designs with another (buyer) to defraud (seller) third party is guilty if fraud.

T or F --- correct answer --- True

98. Operating in a negligent manner is a form of fraud. T or F --- correct answer --- True
99. And attempt to fix commission is a violation of the Sherman-Clayton Act. T or F --- correct answer --- True
100. An auctioneer may receive commission from both the seller and buyer but only with full disclosure.

T or F --- correct answer --- True

101. 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

102. Sales tax must be charged before the buyers premium is added to the bid, thus increasing your profits.

T or F --- correct answer --- False

103. Completion of the sale are auction is when --- correct answer --- The auctioneer says, "SOLD."
104. Chapter 7 bankruptcy is a liquidation of a debtor's assets. T or F --- correct answer --- True
105. The seller in a bulk transfer must furnish a list if creditors to the Auction- eer before the contract is signed.

T or F --- correct answer --- True

106. An auctioneer who has not followed legal procedures may be responsible for a crime involving firearms sold at auction.

T or F --- correct answer --- True

107. Failure of an Auctioneer to give notice to creditors in a Bulk Transfer does not affect title of property to buyers. --- correct answer --- True
108. Knowingly misrepresenting property by an Auctioneer at an auction con- stitutes --- correct answer --- Fraud
109. As an auctioneer, you are permitted to sell for profit 5 used cars per year without a used car license.

T or F --- correct answer --- False

110. To sell firearms at a consignment auction, you must --- correct answer --- Have a auctioneers & firearms license
111. Whig is the most inappropriate way to secure and auction listing? --- correct answer --- Set up an office in the funeral home
112. In selling wavy equipment your advertising should include serial num- bers --- correct answer --- To locate stolen property, to locate pledged property, to identify model & year, if it is a bulk transfer
113. The most important person at an auction --- correct answer --- Auctioneer
114. You must have an auctioneers and real estate license to auction real property in GA.

T or F? --- correct answer --- True

115. The auctioneers fiduciary relationship is usually with the buyer. T or F --- correct answer --- False

116. The real estate broker who sells only real property auction is exempt from requirements for auctioneer licensing.

T or F --- correct answer --- False

117. A full time Auctioneer is --- correct answer --- An auctioneer who owns his own company, an auctioneer who works exclusively doe another auction company
118. A company desiring to obtain an auction company license, requires no training.

T or F --- correct answer --- True

119. In order for a contract to be binding, the signatures if two witness are required.

T or F --- correct answer --- False

120. 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

121. 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

122. You can demand an opening bid & refuse small increment bids at a reserve auction. --- correct answer --- True
123. An auctioneer may be allowed to group or divide lots at an auction if _--

• correct answer ---_ Prior notice has been given

124. 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

125. A contract between an auctioneer and mentally incompetent person is still enforceable by either party.

T or F --- correct answer --- False

126. An auctioneer as a professional license is governed by both laws and ethics.

T or F --- correct answer --- True

127. A valid contract must include --- correct answer --- Date contract is signed, date of performance, consideration
128. Ethics may be defined as --- correct answer --- Honest and fair business dealings
129. 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

130. The terms "antique" and "collectible" mean the same thing. T or F --- correct answer --- False
131. The term "estate auction" always refers tot he sale of property. T or F - -- correct answer --- True
132. Encumbrance --- correct answer --- A claim or lien on property
133. 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

134. Georgia auction law requires you to have a writren, signed contract to legally operate an auction.

T or F --- correct answer --- True

135. Any auction generating gross sales below $2000 is not required to de- posit proceeds into an escrow account.

T or F --- correct answer --- False

136. An auctioneers license must be displayed or made available at each auction.

T or F --- correct answer --- True

137. The principal auctioneer must include their name and license in all adver- tising Of an auction.

T or F --- correct answer --- True

138. The auctioneer is allowed to have three "NO SALES" during the duration. Of any absolute auction.

T or F --- correct answer --- False

139. 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

140. 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

141. An unlicensed person can conduct auctions by being supervised by a licensed auctioneer.

T or F --- correct answer --- False

142. In an agency relationship you are entitled to receive compensation if _--

• correct answer ---_ You are a legally licensed Auctioneer

143. An unlicensed person can conduct auctions I livestock legally without being licensed

T or F --- correct answer --- True

144. The biennial license fee for an auctioneer is $200 T or F --- correct answer --- False
145. A Copy of an auction contract must be held in file for 3 years T or F --- correct answer --- True
146. Misrepresentation of property sold at an auction is considered a major violation of auction law.

T or F --- correct answer --- True

147. An auction clerk must also hold an auctioneers license. T or F --- correct answer --- False
148. The purpose of the auction license law is to protect the public. T or F _--

• correct answer ---_ T

149. An individual serving a three year apprenticeship under a licensed auc- tioneer does not have to attend an auction school.

T or F --- correct answer --- False

150. The auctioneers commission is elected by the licenses of this state. T or F --- correct answer --- False

151. All advertising by an auctioneer must include their name, address, and license number.

T or F --- correct answer --- False

152. When advertising an absolute auction, you are allowed to withdraw any item that did not receive a bid of at least 65% of it's origins cost.

T or F --- correct answer --- False

153. At an absolute auction it is legal for the owner of the property to have an agent to bid on their behalf.

T or F --- correct answer --- False

154. It is legal at an absolute auction to require a minimum opening bid. T or F --- correct answer --- False
155. You must have an auctioneers license to conduct a fundraising auction. T or F --- correct answer --- True
156. An owner of property to be sold may bid, if that fact is announced at the beginning of the sale, and that the sale was not advertised or announced as absolute.

T or F --- correct answer --- True

157. In order to renew your auctioneers license you must attend an eight hour continuing education seminar every year.

T or F --- correct answer --- False

158. An auction company licenses must maintain an escrow account. T or F --- correct answer --- True
159. A license auctioneer may or may not choose to hold a company license. T or F --- correct answer --- True

160. A licensed auctioneer is responsible for all risks of an exempt auction company.

T or F --- correct answer --- True

161. The principal auctioneer must issue a closing statement for all auctions that they conduct.

T or F --- correct answer --- True

162. 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

163. Auctioneers and auction companies both must maintain an escrow ac- count.

T or F --- correct answer ---

164. Auctioneer must deposit al monies coming into their possession into an escrow account.

T or F --- correct answer --- True

165. You must include $100 with your application to sit for the auctioneers examination

T or F --- correct answer --- False

166. Late fees for late renewal if auctioneers license will require a $ penalty T or F --- correct answer --- True
167. Auctioneering without a license will result in a $ penalty --- correct answer --- $
168. The education, research, and recovery fund requires a contribution of

$250.

T or F --- correct answer --- False

169. A licensed auctioneer who owns his own company is a full time auction- eer.

T or F --- correct answer --- True

170. A licensed auctioneer who works exclusively for an auction company is a full time auctioneer.

T or F --- correct answer --- True

171. 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

172. Auction records must be kept in file for 7 years. T or F --- correct answer --- False
173. The statute of Frauds requires that auction contracts must be written. T or F --- correct answer --- True
174. When you receive your auction license you can auction any personal property anywhere in Georgia regardless to local restrictions.

T or F --- correct answer ---

175. Failure to maintain an escrow account is grounds for revocation of auc- tion license.

T or F --- correct answer --- True

176. Escrow accounts must be accessible to the auction commission for inspection.

T or F --- correct answer --- True

177. Auction licenses expire at the end of each odd numbered year. T or F _--

• correct answer ---_ False

178. Advertising of an "auction" is considered to be a reserve auction unless advertised otherwise.

T or F --- correct answer --- True

179. 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
180. If you sell an item after the auction & you found that it was misrepresent- ed, what do you do? --- correct answer --- Recall the item and refund the money.
181. To authenticate antiques at auction, you should --- correct answer --- Get an experts opinion
182. An ordinance may be; --- correct answer --- A rule established by a government authority
183. A sale advertised as an "auction" means; --- correct answer --- Items sold with reserve
184. As a license auctioneer you are; --- correct answer --- An agent of the seller
185. What must be included in an auction contract? --- correct answer --- Date of sale, sellers name, commission rate charge, buyers premium if charged

186. A bid assistant should --- correct answer --- Relay bids to the auctioneer
187. The auctioneer may refuse any bid at an absolute auction after full dis- closure to all interested parties --- correct answer --- False
188. If a property is sold "subject to confirmation" --- correct answer --- Owner may accept or reject any bid
189. In a bulk transfer, an auctioneer must notify all creditors at least how many days before the sale? --- correct answer --- 10
190. Open statements at an auction should include --- correct answer --- Terms and conditions
191. Disclosure of "not responsible for accidents" in auction advertising does what? --- correct answer --- Relieves no one from liability
192. Bankruptcy reorganization for a company is which chapter? --- correct answer --- 11
193. Inquiries about the sale of cattle at auction should be directed to who? --- correct answer --- -

Agriculture department

194. Placing lotts in numerical order benefits who? --- correct answer --- Buyers, sellers, load out crew
195. Any transfer in bulk and not in the ordinary course of the transferee's business may be a bulk transfer.

T or F --- correct answer --- False

196. A written auction contract is an agreement that creates an obligation T or F --- correct answer --- True

197. An auctioneer acting on behalf of property owner upon signing of a contract, becomes an agent.

T or F --- correct answer --- True

198. In bankruptcy, the estate of the debtor is placed in the hands of a trustee. T or F --- correct answer --- True
199. The bulk sale transfer article is a part of the uniform commercial code. T or F --- correct answer --- True

20 0. Caveat emptor means "let the buyer beware" T or F --- correct answer - -- True

201. An auction conducted with no reserves is an absolute auction. T or F --- correct answer --- True