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

Download Georgia Auction Study Guide Exam Questions and Answers and more Exams Accounting in PDF only on Docsity! GA Auction Study Guide Exam Questions with 100% Correct Verified Answers 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 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 --- $250 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 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 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 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 200. 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