ARKANSAS AUCTIONEER COMPREHENSIVE EXAMS
QUESTIONS AND SOLUTIONS 2025/2026 GRADED A+
✔✔Board's Authority - ✔✔Legal power to issue rules and orders.
✔✔Adjudicatory Hearing - ✔✔Formal process for resolving disputes or petitions.
✔✔Court Ordered Auction - ✔✔Auction without auctioneer license under judicial
authority.
✔✔Nonprofit Organization Auction - ✔✔No auctioneer license needed for nonprofit
auctions.
✔✔Livestock Auction - ✔✔No auctioneer license required for livestock auctions.
✔✔Internet Auction - ✔✔Auctioneer license not needed for online auctions under
conditions.
✔✔Used Motor Vehicle Dealer - ✔✔Licensed dealer conducting auctions within their
license scope.
✔✔E-commerce Website Owner - ✔✔Facilitates online sales, must ensure buyer
protections.
✔✔Written Contract Requirement - ✔✔Auction agreements must be documented in
writing.
✔✔Contract Components - ✔✔Includes date, location, terms, commission, and
signatures.
✔✔Auction Timing - ✔✔Contract must be signed before auction starts.
✔✔Absolute Auction - ✔✔All bids accepted, ownership transferred without conditions.
✔✔License Number in Advertising - ✔✔Advertisers must include name, address, and
license number.
✔✔Board Attendance at Auctions - ✔✔Board members can attend to verify auction
records.
✔✔Settlement of Proceeds - ✔✔Funds must be settled within ten business days.
✔✔Terms Announcement - ✔✔Auction terms and conditions must be stated at start.
, ✔✔Record Keeping Duration - ✔✔Auction records must be kept for three years.
✔✔Escrow Account Requirement - ✔✔Funds must be kept separate from personal
accounts.
✔✔Single Escrow Account - ✔✔One account can hold funds from multiple auctions.
✔✔Interest on Escrow Accounts - ✔✔Interest is allowed if all parties agree on
distribution.
✔✔Recovery Fund Fee - ✔✔Auctioneers pay $100 fee at licensing and renewal.
✔✔Recovery Fund Target - ✔✔Fund aims to reach $180,000 total.
✔✔Auctioneer License Exemptions - ✔✔Specific conditions allow auctions without a
license.
✔✔Auction Commission - ✔✔Percentage charged for auction services, specified in
contract.
✔✔License Renewal Fee - ✔✔Annual fee of $100 for two years.
✔✔Recovery Fund Balance - ✔✔Minimum fund balance of $180,000 required.
✔✔Proportionate Payment - ✔✔Licensees pay based on fund balance below $100,000.
✔✔Payment of Damages - ✔✔Damages paid if licensee fails within 30 days.
✔✔Payment Request Requirements - ✔✔Request must include amount, payee,
complaint number, statement.
✔✔Compensatory Damages Only - ✔✔Board awards only actual damages, no punitive
damages.
✔✔Maximum Payment Limit - ✔✔Payment limited to $15,000 per violation.
✔✔Continuing Violations Definition - ✔✔Determined by Board's discretion on violations.
✔✔Licensure Governing Code - ✔✔Ark. Code Ann. §§ 17-17-101 et seq. governs
licensure.
✔✔Address Change Notification - ✔✔Licensees must notify Board of address changes
within 30 days.
QUESTIONS AND SOLUTIONS 2025/2026 GRADED A+
✔✔Board's Authority - ✔✔Legal power to issue rules and orders.
✔✔Adjudicatory Hearing - ✔✔Formal process for resolving disputes or petitions.
✔✔Court Ordered Auction - ✔✔Auction without auctioneer license under judicial
authority.
✔✔Nonprofit Organization Auction - ✔✔No auctioneer license needed for nonprofit
auctions.
✔✔Livestock Auction - ✔✔No auctioneer license required for livestock auctions.
✔✔Internet Auction - ✔✔Auctioneer license not needed for online auctions under
conditions.
✔✔Used Motor Vehicle Dealer - ✔✔Licensed dealer conducting auctions within their
license scope.
✔✔E-commerce Website Owner - ✔✔Facilitates online sales, must ensure buyer
protections.
✔✔Written Contract Requirement - ✔✔Auction agreements must be documented in
writing.
✔✔Contract Components - ✔✔Includes date, location, terms, commission, and
signatures.
✔✔Auction Timing - ✔✔Contract must be signed before auction starts.
✔✔Absolute Auction - ✔✔All bids accepted, ownership transferred without conditions.
✔✔License Number in Advertising - ✔✔Advertisers must include name, address, and
license number.
✔✔Board Attendance at Auctions - ✔✔Board members can attend to verify auction
records.
✔✔Settlement of Proceeds - ✔✔Funds must be settled within ten business days.
✔✔Terms Announcement - ✔✔Auction terms and conditions must be stated at start.
, ✔✔Record Keeping Duration - ✔✔Auction records must be kept for three years.
✔✔Escrow Account Requirement - ✔✔Funds must be kept separate from personal
accounts.
✔✔Single Escrow Account - ✔✔One account can hold funds from multiple auctions.
✔✔Interest on Escrow Accounts - ✔✔Interest is allowed if all parties agree on
distribution.
✔✔Recovery Fund Fee - ✔✔Auctioneers pay $100 fee at licensing and renewal.
✔✔Recovery Fund Target - ✔✔Fund aims to reach $180,000 total.
✔✔Auctioneer License Exemptions - ✔✔Specific conditions allow auctions without a
license.
✔✔Auction Commission - ✔✔Percentage charged for auction services, specified in
contract.
✔✔License Renewal Fee - ✔✔Annual fee of $100 for two years.
✔✔Recovery Fund Balance - ✔✔Minimum fund balance of $180,000 required.
✔✔Proportionate Payment - ✔✔Licensees pay based on fund balance below $100,000.
✔✔Payment of Damages - ✔✔Damages paid if licensee fails within 30 days.
✔✔Payment Request Requirements - ✔✔Request must include amount, payee,
complaint number, statement.
✔✔Compensatory Damages Only - ✔✔Board awards only actual damages, no punitive
damages.
✔✔Maximum Payment Limit - ✔✔Payment limited to $15,000 per violation.
✔✔Continuing Violations Definition - ✔✔Determined by Board's discretion on violations.
✔✔Licensure Governing Code - ✔✔Ark. Code Ann. §§ 17-17-101 et seq. governs
licensure.
✔✔Address Change Notification - ✔✔Licensees must notify Board of address changes
within 30 days.
