2027 | COMPLETE REAL EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS/ ALREADY GRADED A+| Indiana
Auctioneer EXAM PREP (MOST RECENT!!)
What is a UCC Search
UCC stands for Uniform Commercial Code. It allows creditors to notify
other creditors about a debtor's assets used as collateral for a secured
transaction. It is a liability for the auctioneer if no UCC search is made.
UCC DOES NOT APPLY TO REAL ESTATE.
Why a signed contract would not be valid
Fraud or misrepresentation, duress (threat or use of force,) undue
influence, and mistake.
Discharging a contract
complete performance, partial performance, substantial performance,
expiration of agreement, mutual agreement, assignment, novation,
breach
Remedies for broken or breached contracts
Rescind (cancel,) forfeit, specific performance, sue for compensatory
Auction contracts with sellers
explicit terms and conditions, in writing and duplicate, date of contract
and of auction sale, kept for two years, auction houses may be exempt.
,Anti-Trust Laws
prohibits every contract combination or conspiracy in restraint o trade
or commerce and any monopolization or attempt to monopolize trade
or commerce, unreasonable acts and the Rule of Reason, "per se"
violations, price discrimination, mergers, and brokerage and exclusive
dealing
Federal Trade Commission Act-1915
Prohibits "unfair methods of competition and other unfair or deceptive
acts or practices." It also covers injury to consumers as well as
competitors.
Completion of an auction sale
By the fall of the hammer or any other manner saying "sold" or the
ringing of a bell.
When the hammer is falling on a bid, and someone makes another bid,
what can the auctioneer do?
Re-open the bidding at the auctioneer's discretion (should be open to
all bidders.) The Ring person does not have any standing under the law,
OR the auctioneer could say the good sold (under the bid on which the
hammer was falling)
,Bidding by sellers
allowed if announced prior to the sale, NOT ALLOWED if nothing is said,
allowed if the dissolution of partnership or corporation, and allowed at
forced sales. Bidding without the intent of buying to drive up prices and
withdrawing the bid is illegal.
Retraction by bidders
Retractions do not revive any previous bids, it prevents collusion among
bidders to lower prices. Bidding in groups to eliminate competition is
called pooling and is illegal. It also prevents sellers from bidding up
buyers.
Definition of bulk sale
sale is NOT in the ordinary course of business of the seller, selling more
than 1/2 of the inventory, after sale, seller won't be in the same or similar
business,
Liens
security interest on property (A right to keep possession of property
belonging to another person until a debt owed by that person is
discharged) Assume large items have liens.
Duties of auctioneers in regards to bulk sales and secured creditors
require seller to furnish list of creditors, require seller to furnish list of all
business names and address used in the last 3 years, preschedule of
property to be sold-for creditors, and do UCC lien search.
, Handling auction proceeds in lien situations
UCC article: administrative costs paid first (Auctioneer Commission)
Place proceeds in auction escrow account, pay out proceeds-to
creditors if all money is owed, to seller/debtor in some cases if there are
surplus funds. Proceeds paid to court if liens questioned.
Environmental Concerns
Water Supply and possible contamination: improper discharge of
industrial wastes etc., Sewage systems: improper installation, old and
unmaintained, etc. LEAD in paint, Radon Gas, Asbestos, wood-
destroying insects, Formaldehyde, and underground storage tanks.
an antique teapot is determined to be made of pewter. Which of the
following would be true?
It could contain antimony and lead
Marble top furniture is characteristic of which period of furniture?
Victorian
Hepplewhite is a type of which?
Furniture
Cabriole legs and snake feet best characterize which period of
furniture?
Queen Anne