ARKANSAS AUCTIONEER END OF COURSE QUESTIONS AND
SOLUTIONS 2025/2026 GRADED A+
✔✔The Georgia Auction Education, Research, and Recovery Fund - ✔✔Must maintain
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.
✔✔The Georgia Auction Commission is made up of 5 auctioneers and 1 person
associated with auctions.
T or F? - ✔✔True
✔✔A valid contract must include: - ✔✔An offer by one of the parties, an acceptance of
the offer by another party, and consideration
✔✔A corporation can be exempt from licensing by - ✔✔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.
✔✔Auctioneers are required to deposit funds belonging to others in their escrow
account when: - ✔✔The total sale exceeds $2,000, the sale is settled after 48 hours of
sale
✔✔An auctioneer is responsible for having their name and license including in all
advertising of an auction.
T or F? - ✔✔True
✔✔Auctioneers must issue closing statements and include: - ✔✔Name and address 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.
✔✔A sale advertised as an "auction" means - ✔✔Bidder may retract their bid any time
prior to the auctioneering saying sold, and the auctioneer may refuse any and all bids
✔✔A penalty fee of $___ will be imposed for auctioneering without a license - ✔✔$250
✔✔In Georgia, sales tax must be charged on personal property sold to the consumer at:
- ✔✔An estate sale held on site, a public auction holding regular sales, inventory
liquidations
✔✔A sale advertised as "absolute auction" means - ✔✔Each item must be sold to high
bidder, bidder may retract their bid any time prior to the auctioneer saying sold
,✔✔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? - ✔✔False
✔✔Absolute Auction - ✔✔If you advertise an auction that "everything will be sold to the
bidder regardless of the price."
✔✔Contract - ✔✔Legal agreement between competent parties
✔✔Executed contract - ✔✔A signed contract
✔✔Negotiation of a contract - ✔✔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
✔✔The Statue of Frauds requires that auction contracts must be written.
T or F? - ✔✔True
✔✔Common law requires that auction contracts must be written.
T or F? - ✔✔False
✔✔Parol evidence in a contract may be abided by, but is not enforceable in a court of
law.
T or F? - ✔✔True
✔✔Compliance with the statue of frauds requires - ✔✔Names of parties to the contract,
statement of related subject matter, all terms and conditions, signature of the parties
✔✔A contract to perform an action which is impossible to performs is a valid contract.
T or F? - ✔✔False
✔✔Which essential element of a valid contract is not required to prove legal capacity? -
✔✔A citizen of Georgia
✔✔Misrepresentations and mistakes both affect the validity of a contract.
T or F? - ✔✔True
✔✔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? - ✔✔False
, ✔✔Something of value must be received to make a contract binding, "Love and
affection" is accepted as a form of consideration.
T or F? - ✔✔False
✔✔Acceptance of an offer by a party influenced under duress or undue influence is not
enforceable.
T or F - ✔✔True
✔✔An emancipated minor can enforce a contract.
T or F - ✔✔True
✔✔A mentally incompetent person cannot enforce a contract. When can this person
enforce a contract? - ✔✔When they are adjudged competent by the courts.
✔✔A void contract was never legal this it was binding.
T or F - ✔✔True
✔✔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 - ✔✔True
✔✔Requirements of a valid contract are - ✔✔Competent parties, mutual agreement,
consideration, legal purpose, in writing.
✔✔A unilateral contract is an agreement between two parties.
T or F - ✔✔False
✔✔Written auction contract - ✔✔Expressed
✔✔Auction contracts are usually assignable.
T or F - ✔✔False
✔✔A breach of contract situation occurs when - ✔✔A violation of terms of the contract
agreement occurs
✔✔Remedies for breach of contract may be - ✔✔Damages that are Compensatory,
punitive, nominal, or liquidated
✔✔Punitive damages for breach of contract - ✔✔Payment to punish the party breaching
the contract
SOLUTIONS 2025/2026 GRADED A+
✔✔The Georgia Auction Education, Research, and Recovery Fund - ✔✔Must maintain
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.
✔✔The Georgia Auction Commission is made up of 5 auctioneers and 1 person
associated with auctions.
T or F? - ✔✔True
✔✔A valid contract must include: - ✔✔An offer by one of the parties, an acceptance of
the offer by another party, and consideration
✔✔A corporation can be exempt from licensing by - ✔✔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.
✔✔Auctioneers are required to deposit funds belonging to others in their escrow
account when: - ✔✔The total sale exceeds $2,000, the sale is settled after 48 hours of
sale
✔✔An auctioneer is responsible for having their name and license including in all
advertising of an auction.
T or F? - ✔✔True
✔✔Auctioneers must issue closing statements and include: - ✔✔Name and address 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.
✔✔A sale advertised as an "auction" means - ✔✔Bidder may retract their bid any time
prior to the auctioneering saying sold, and the auctioneer may refuse any and all bids
✔✔A penalty fee of $___ will be imposed for auctioneering without a license - ✔✔$250
✔✔In Georgia, sales tax must be charged on personal property sold to the consumer at:
- ✔✔An estate sale held on site, a public auction holding regular sales, inventory
liquidations
✔✔A sale advertised as "absolute auction" means - ✔✔Each item must be sold to high
bidder, bidder may retract their bid any time prior to the auctioneer saying sold
,✔✔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? - ✔✔False
✔✔Absolute Auction - ✔✔If you advertise an auction that "everything will be sold to the
bidder regardless of the price."
✔✔Contract - ✔✔Legal agreement between competent parties
✔✔Executed contract - ✔✔A signed contract
✔✔Negotiation of a contract - ✔✔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
✔✔The Statue of Frauds requires that auction contracts must be written.
T or F? - ✔✔True
✔✔Common law requires that auction contracts must be written.
T or F? - ✔✔False
✔✔Parol evidence in a contract may be abided by, but is not enforceable in a court of
law.
T or F? - ✔✔True
✔✔Compliance with the statue of frauds requires - ✔✔Names of parties to the contract,
statement of related subject matter, all terms and conditions, signature of the parties
✔✔A contract to perform an action which is impossible to performs is a valid contract.
T or F? - ✔✔False
✔✔Which essential element of a valid contract is not required to prove legal capacity? -
✔✔A citizen of Georgia
✔✔Misrepresentations and mistakes both affect the validity of a contract.
T or F? - ✔✔True
✔✔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? - ✔✔False
, ✔✔Something of value must be received to make a contract binding, "Love and
affection" is accepted as a form of consideration.
T or F? - ✔✔False
✔✔Acceptance of an offer by a party influenced under duress or undue influence is not
enforceable.
T or F - ✔✔True
✔✔An emancipated minor can enforce a contract.
T or F - ✔✔True
✔✔A mentally incompetent person cannot enforce a contract. When can this person
enforce a contract? - ✔✔When they are adjudged competent by the courts.
✔✔A void contract was never legal this it was binding.
T or F - ✔✔True
✔✔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 - ✔✔True
✔✔Requirements of a valid contract are - ✔✔Competent parties, mutual agreement,
consideration, legal purpose, in writing.
✔✔A unilateral contract is an agreement between two parties.
T or F - ✔✔False
✔✔Written auction contract - ✔✔Expressed
✔✔Auction contracts are usually assignable.
T or F - ✔✔False
✔✔A breach of contract situation occurs when - ✔✔A violation of terms of the contract
agreement occurs
✔✔Remedies for breach of contract may be - ✔✔Damages that are Compensatory,
punitive, nominal, or liquidated
✔✔Punitive damages for breach of contract - ✔✔Payment to punish the party breaching
the contract
