Indiana Auctioneer Licensure 2026–2027 | Indiana
Auctioneer License Exam Study Guide & Practice
Questions | Indiana Auctioneer Licensing Exam
Prep, Indiana Auctioneer Commission, Indiana
Professional Licensing Agency (IPLA), Auction Law
& Regulations, Bid Calling, Sale Preparation, Sale
Advertising, Sale Summaries, Auction Mathematics,
Real Estate & Personal Property Valuation,
Contracts, Ethics, Licensing Requirements,
Scenario-Based Practice, Answers & Detailed
Rationales
Question 1: According to Indiana Code, what is the minimum age requirement
for an individual to obtain an auctioneer license?
A. 16 years of age
B. 18 years of age
C. 21 years of age
D. 25 years of age
CORRECT ANSWER: B. 18 years of age
Rationale: Indiana Code § 25-6.1-3-2(b)(1) explicitly states that an applicant for an
auctioneer license must be at least eighteen (18) years of age. This aligns with the legal
age of majority in Indiana, ensuring licensed auctioneers can enter into binding
contracts.
Question 2: Under Indiana law, how many hours of actual auction instruction
must an applicant complete from a commission-approved course provider
before taking the licensing examination?
A. 40 hours
B. 60 hours
C. 80 hours
D. 100 hours
CORRECT ANSWER: C. 80 hours
Rationale: Indiana Code § 25-6.1-3-2(b)(2) requires applicants to have completed at least
eighty (80) actual hours of auction instruction from a course provider approved by the
commission. The 80-hour requirement is further broken down into specific subject areas
under Indiana Administrative Code Title 812.
Question 3: Which state body is responsible for regulating auctioneers and
administering the licensing examination in Indiana?
A. Indiana Department of Revenue
B. Indiana Auctioneer Commission
,C. Indiana Secretary of State
D. Indiana Department of Financial Institutions
CORRECT ANSWER: B. Indiana Auctioneer Commission
Rationale: The Indiana Auctioneer Commission is the governing body established under
IC 25-6.1 to regulate auctioneering practice, set licensing requirements, and administer
examinations. The Professional Licensing Agency provides administrative support but
the Commission holds regulatory authority.
Question 4: Under Indiana law, what is the term length for an auctioneer
license?
A. One year
B. Two years
C. Three years
D. Four years
CORRECT ANSWER: D. Four years
Rationale: Indiana Code § 25-6.1-3-2(j) specifies that auctioneer licenses shall be issued
for a term of four (4) years and expire on the date established by the licensing agency.
Licenses expire February 28th of every fourth year (e.g., 2028, 2032).
Question 5: How many hours of continuing education must an Indiana
auctioneer complete during each four-year license period to renew their
license?
A. 8 hours
B. 12 hours
C. 16 hours
D. 24 hours
CORRECT ANSWER: C. 16 hours
Rationale: Auctioneers are required to obtain sixteen (16) hours of continuing education
during each four-year license period. This requirement must be certified when applying
for license renewal.
Question 6: Under the Uniform Commercial Code as adopted in Indiana, an
auction is presumed to be which of the following unless explicitly stated
otherwise?
A. Without reserve
B. With reserve
C. Absolute
D. Conditional
CORRECT ANSWER: B. With reserve
,Rationale: Under UCC Section 2-328, all auctions are presumed to be "with reserve"
unless explicitly stated otherwise. In a reserve auction, the seller retains the right to
accept or reject the highest bid and may withdraw goods before the completion of the
sale.
Question 7: Which of the following best describes an "absolute auction" under
Indiana auction law?
A. An auction where the seller may reject any bid
B. An auction with no reserve or minimum price where goods cannot be withdrawn
once bidding opens
C. An auction conducted only for charitable organizations
D. An auction where all items are sold at a fixed price
CORRECT ANSWER: B. An auction with no reserve or minimum price where
goods cannot be withdrawn once bidding opens
Rationale: An absolute auction (also called a no-reserve auction) has no reserve or
restriction on price, and goods cannot be withdrawn once bidding is opened. This
contrasts with a reserve auction where the seller reserves the right to accept or reject
the highest bid.
Question 8: What is the examination fee for the Indiana auctioneer licensing
examination?
A. $25.00
B. $35.00
C. $50.00
D. $100.00
CORRECT ANSWER: B. $35.00
Rationale: The examination application fee is $35.00, to be paid by credit or debit card
at the time of application. This fee is nonrefundable.
Question 9: Which of the following subjects is NOT explicitly required in the
80-hour auction instruction curriculum under Indiana law?
A. Bid calling
B. Auction mathematics
C. International trade finance
D. Sale preparation and advertising
CORRECT ANSWER: C. International trade finance
Rationale: Indiana Code § 25-6.1-3-2(c) requires instruction in value of real estate and
goods, bid calling, sale preparation, sale advertising, sale summary, mathematics, and
provisions of the auctioneer statute and commission rules. International trade finance is
not among the statutory requirements.
Question 10: What is a "buyer's premium" in the context of an auction?
, A. A fee paid by the seller to the auctioneer
B. A surcharge added to the winning bid that the buyer must pay
C. A tax imposed by the federal government
D. A discount applied to early bidders
CORRECT ANSWER: B. A surcharge added to the winning bid that the buyer
must pay
Rationale: A buyer's premium is an additional percentage added to the winning bid that
the buyer must pay. This fee structure must be clearly disclosed in the terms and
conditions of the auction to ensure transparency.
Question 11: Under Indiana auction law, what constitutes "shill bidding"?
A. Competitive bidding among multiple legitimate buyers
B. A bid placed by or on behalf of the seller to artificially inflate the price
C. Bidding only during online auctions
D. A bid placed after the auctioneer announces "sold"
CORRECT ANSWER: B. A bid placed by or on behalf of the seller to artificially
inflate the price
Rationale: A shill bid (also called a by-bid or puffer bid) is a fraudulent bid placed by or
on behalf of the seller to drive up the sale price. Under both Indiana law and the UCC,
shill bidding is prohibited and constitutes fraud.
Question 12: In a reserve auction, when may the auctioneer withdraw goods
from sale?
A. Only before the auction begins
B. At any time until the completion of the sale
C. Only if no bids are received
D. Goods cannot be withdrawn in a reserve auction
CORRECT ANSWER: B. At any time until the completion of the sale
Rationale: In a reserve auction, the auctioneer can withdraw goods at any time until the
sale is complete. This is because the seller has reserved the right to accept or reject the
highest bid.
Question 13: What is the "hammer price" in an auction transaction?
A. The initial listing price before bidding begins
B. The final price at which the item is sold when the auctioneer closes bidding
C. The fee charged for auction setup
D. The advertising cost of the auction
CORRECT ANSWER: B. The final price at which the item is sold when the
auctioneer closes bidding
Auctioneer License Exam Study Guide & Practice
Questions | Indiana Auctioneer Licensing Exam
Prep, Indiana Auctioneer Commission, Indiana
Professional Licensing Agency (IPLA), Auction Law
& Regulations, Bid Calling, Sale Preparation, Sale
Advertising, Sale Summaries, Auction Mathematics,
Real Estate & Personal Property Valuation,
Contracts, Ethics, Licensing Requirements,
Scenario-Based Practice, Answers & Detailed
Rationales
Question 1: According to Indiana Code, what is the minimum age requirement
for an individual to obtain an auctioneer license?
A. 16 years of age
B. 18 years of age
C. 21 years of age
D. 25 years of age
CORRECT ANSWER: B. 18 years of age
Rationale: Indiana Code § 25-6.1-3-2(b)(1) explicitly states that an applicant for an
auctioneer license must be at least eighteen (18) years of age. This aligns with the legal
age of majority in Indiana, ensuring licensed auctioneers can enter into binding
contracts.
Question 2: Under Indiana law, how many hours of actual auction instruction
must an applicant complete from a commission-approved course provider
before taking the licensing examination?
A. 40 hours
B. 60 hours
C. 80 hours
D. 100 hours
CORRECT ANSWER: C. 80 hours
Rationale: Indiana Code § 25-6.1-3-2(b)(2) requires applicants to have completed at least
eighty (80) actual hours of auction instruction from a course provider approved by the
commission. The 80-hour requirement is further broken down into specific subject areas
under Indiana Administrative Code Title 812.
Question 3: Which state body is responsible for regulating auctioneers and
administering the licensing examination in Indiana?
A. Indiana Department of Revenue
B. Indiana Auctioneer Commission
,C. Indiana Secretary of State
D. Indiana Department of Financial Institutions
CORRECT ANSWER: B. Indiana Auctioneer Commission
Rationale: The Indiana Auctioneer Commission is the governing body established under
IC 25-6.1 to regulate auctioneering practice, set licensing requirements, and administer
examinations. The Professional Licensing Agency provides administrative support but
the Commission holds regulatory authority.
Question 4: Under Indiana law, what is the term length for an auctioneer
license?
A. One year
B. Two years
C. Three years
D. Four years
CORRECT ANSWER: D. Four years
Rationale: Indiana Code § 25-6.1-3-2(j) specifies that auctioneer licenses shall be issued
for a term of four (4) years and expire on the date established by the licensing agency.
Licenses expire February 28th of every fourth year (e.g., 2028, 2032).
Question 5: How many hours of continuing education must an Indiana
auctioneer complete during each four-year license period to renew their
license?
A. 8 hours
B. 12 hours
C. 16 hours
D. 24 hours
CORRECT ANSWER: C. 16 hours
Rationale: Auctioneers are required to obtain sixteen (16) hours of continuing education
during each four-year license period. This requirement must be certified when applying
for license renewal.
Question 6: Under the Uniform Commercial Code as adopted in Indiana, an
auction is presumed to be which of the following unless explicitly stated
otherwise?
A. Without reserve
B. With reserve
C. Absolute
D. Conditional
CORRECT ANSWER: B. With reserve
,Rationale: Under UCC Section 2-328, all auctions are presumed to be "with reserve"
unless explicitly stated otherwise. In a reserve auction, the seller retains the right to
accept or reject the highest bid and may withdraw goods before the completion of the
sale.
Question 7: Which of the following best describes an "absolute auction" under
Indiana auction law?
A. An auction where the seller may reject any bid
B. An auction with no reserve or minimum price where goods cannot be withdrawn
once bidding opens
C. An auction conducted only for charitable organizations
D. An auction where all items are sold at a fixed price
CORRECT ANSWER: B. An auction with no reserve or minimum price where
goods cannot be withdrawn once bidding opens
Rationale: An absolute auction (also called a no-reserve auction) has no reserve or
restriction on price, and goods cannot be withdrawn once bidding is opened. This
contrasts with a reserve auction where the seller reserves the right to accept or reject
the highest bid.
Question 8: What is the examination fee for the Indiana auctioneer licensing
examination?
A. $25.00
B. $35.00
C. $50.00
D. $100.00
CORRECT ANSWER: B. $35.00
Rationale: The examination application fee is $35.00, to be paid by credit or debit card
at the time of application. This fee is nonrefundable.
Question 9: Which of the following subjects is NOT explicitly required in the
80-hour auction instruction curriculum under Indiana law?
A. Bid calling
B. Auction mathematics
C. International trade finance
D. Sale preparation and advertising
CORRECT ANSWER: C. International trade finance
Rationale: Indiana Code § 25-6.1-3-2(c) requires instruction in value of real estate and
goods, bid calling, sale preparation, sale advertising, sale summary, mathematics, and
provisions of the auctioneer statute and commission rules. International trade finance is
not among the statutory requirements.
Question 10: What is a "buyer's premium" in the context of an auction?
, A. A fee paid by the seller to the auctioneer
B. A surcharge added to the winning bid that the buyer must pay
C. A tax imposed by the federal government
D. A discount applied to early bidders
CORRECT ANSWER: B. A surcharge added to the winning bid that the buyer
must pay
Rationale: A buyer's premium is an additional percentage added to the winning bid that
the buyer must pay. This fee structure must be clearly disclosed in the terms and
conditions of the auction to ensure transparency.
Question 11: Under Indiana auction law, what constitutes "shill bidding"?
A. Competitive bidding among multiple legitimate buyers
B. A bid placed by or on behalf of the seller to artificially inflate the price
C. Bidding only during online auctions
D. A bid placed after the auctioneer announces "sold"
CORRECT ANSWER: B. A bid placed by or on behalf of the seller to artificially
inflate the price
Rationale: A shill bid (also called a by-bid or puffer bid) is a fraudulent bid placed by or
on behalf of the seller to drive up the sale price. Under both Indiana law and the UCC,
shill bidding is prohibited and constitutes fraud.
Question 12: In a reserve auction, when may the auctioneer withdraw goods
from sale?
A. Only before the auction begins
B. At any time until the completion of the sale
C. Only if no bids are received
D. Goods cannot be withdrawn in a reserve auction
CORRECT ANSWER: B. At any time until the completion of the sale
Rationale: In a reserve auction, the auctioneer can withdraw goods at any time until the
sale is complete. This is because the seller has reserved the right to accept or reject the
highest bid.
Question 13: What is the "hammer price" in an auction transaction?
A. The initial listing price before bidding begins
B. The final price at which the item is sold when the auctioneer closes bidding
C. The fee charged for auction setup
D. The advertising cost of the auction
CORRECT ANSWER: B. The final price at which the item is sold when the
auctioneer closes bidding
