ARKANSAS AUCTIONEER EXAM SCRIPT QUESTIONS AND
SOLUTIONS 2025/2026 GRADED A+
✔✔True/False: If two bidders think they have the final bid after the hammer falls, the
auctioneer is required by law to reopen the bidding. - ✔✔False; the auctioneer may give
the item to the bidder originally recognized as having the high bid, or reopen the bidding
generally, or between two contending bidders.
✔✔What are the elements of a valid contract? - ✔✔The buyer and seller must be of
legal age, not intoxicated or mentally incompetent, and duly authorized to enter into a
legal contract if acting for a partnership or corporation; there must be an offer and
acceptance; the promises exchanged by the parties must also be based on a "good and
valuable consideration", a consideration does not have to be money but it is generally
something of value that is being exchanged for something specified in the contract; the
actions in the contract must be legal, contracts must be in writing; the contract must be
dated; must state if the seller has liens against the property; include the auctioneer
commission rate; who pays for advertising; if there is a reserve; who will collect bad
checks; both parties must sign.
✔✔In signing an auction contract, the auctioneer should state: (A) The percentage of
commission and any other applicable fees or charges (B) The name of the business (C)
If it is selling with or without a reserve price (D) All of the above - ✔✔(D) All three of the
items are important elements of the auction listing contract.
✔✔What is a bulk transfer? - ✔✔It is any transfer in bulk and not in the ordinary course
of the transferor's business, such as the sale of a business's entire inventory to a single
buyer.
✔✔What is a transferor? - ✔✔A person who makes a transfer or conveyance of
property
✔✔What does the transferor need to do to prepare for a bulk transfer? - ✔✔Furnish a
list of creditors and assist in the preparation of a schedule of the property to be sold.
✔✔What does the auctioneer need to do to prepare for a bulk transfer? - ✔✔Receive
and retain list of creditors and schedule of property, give creditors notice of auction by
certified mail 10 days before it occurs, and assure net proceeds of the auction are
applied. Failure to do these things renders the auctioneer liable to the creditors.
✔✔The term "false, misleading, or deceptive acts or practices" includes: - ✔✔Passing
off goods or services as those of another; causing confusion or misunderstanding as to
the source, sponsorship, approval, or certification of goods or services; causing
confusion or misunderstanding as to affiliation, connection, or association with or
certification by another
, ✔✔The term "false, misleading, or deceptive acts or practices" includes: - ✔✔Using
deceptive representations or designations of geographic origin in connection with goods
or services; representing that goods or services have sponsorship, approval,
characteristics, ingredients, uses, benefits, or quantities which they do not have or that
a person has a sponsorship, approval, status, affiliation, or connection which he does
not;
✔✔The term "false, misleading, or deceptive acts or practices" includes: -
✔✔Representing that goods are original or new if they are deteriorated, reconditioned,
reclaimed, used or secondhand; representing that goods or services are of a particular
standard, quality, or grade, or that goods are of a particular style of model, if they are of
another; disparaging the goods, services, or business of another by false or misleading
representation of facts;
✔✔The term "false, misleading, or deceptive acts or practices" includes: -
✔✔Advertising goods or services with intent not to sell them as advertised; advertising
goods or services with intent not to supply a reasonable expectable public demand,
unless the advertisements disclosed a limitation of quantity; making false or misleading
statements of fact concerning the reasons for, existence of, or amount of price
reductions;
✔✔True/False: In a sale by auction, if goods are put up in lots, eat lot is the subject of a
separate sale. - ✔✔True
✔✔When is a sale by auction complete? - ✔✔When the auctioneer so announces by
the fall of the hammer or in other customary manner.
✔✔What happens if a bid is made while the hammer is falling? - ✔✔The auctioneer in
their discretion may reopen the bidding or declare the goods sold under the bid on
which the hammer was falling.
✔✔True/False: A sale by auction is without reserve unless the goods are in explicit
terms put up with reserve. - ✔✔False; by default auction sales are with reserve.
✔✔How long does a bidder have retract their bid? - ✔✔Until the auctioneer's
announcement of completion of the sale. A retraction does not revive any previous bid.
✔✔True/False: If the auctioneer knowingly receives a bid on the seller's behalf or the
seller makes or procures such a bid, and notice has not been given that liberty for such
bidding is reserved, the buyer may at his option avoid the sale or take the goods at the
price of the last good faith bid prior to the completion of the sale. - ✔✔True
✔✔Who is the purchaser in an auction? - ✔✔The purchaser is the highest bidder.
SOLUTIONS 2025/2026 GRADED A+
✔✔True/False: If two bidders think they have the final bid after the hammer falls, the
auctioneer is required by law to reopen the bidding. - ✔✔False; the auctioneer may give
the item to the bidder originally recognized as having the high bid, or reopen the bidding
generally, or between two contending bidders.
✔✔What are the elements of a valid contract? - ✔✔The buyer and seller must be of
legal age, not intoxicated or mentally incompetent, and duly authorized to enter into a
legal contract if acting for a partnership or corporation; there must be an offer and
acceptance; the promises exchanged by the parties must also be based on a "good and
valuable consideration", a consideration does not have to be money but it is generally
something of value that is being exchanged for something specified in the contract; the
actions in the contract must be legal, contracts must be in writing; the contract must be
dated; must state if the seller has liens against the property; include the auctioneer
commission rate; who pays for advertising; if there is a reserve; who will collect bad
checks; both parties must sign.
✔✔In signing an auction contract, the auctioneer should state: (A) The percentage of
commission and any other applicable fees or charges (B) The name of the business (C)
If it is selling with or without a reserve price (D) All of the above - ✔✔(D) All three of the
items are important elements of the auction listing contract.
✔✔What is a bulk transfer? - ✔✔It is any transfer in bulk and not in the ordinary course
of the transferor's business, such as the sale of a business's entire inventory to a single
buyer.
✔✔What is a transferor? - ✔✔A person who makes a transfer or conveyance of
property
✔✔What does the transferor need to do to prepare for a bulk transfer? - ✔✔Furnish a
list of creditors and assist in the preparation of a schedule of the property to be sold.
✔✔What does the auctioneer need to do to prepare for a bulk transfer? - ✔✔Receive
and retain list of creditors and schedule of property, give creditors notice of auction by
certified mail 10 days before it occurs, and assure net proceeds of the auction are
applied. Failure to do these things renders the auctioneer liable to the creditors.
✔✔The term "false, misleading, or deceptive acts or practices" includes: - ✔✔Passing
off goods or services as those of another; causing confusion or misunderstanding as to
the source, sponsorship, approval, or certification of goods or services; causing
confusion or misunderstanding as to affiliation, connection, or association with or
certification by another
, ✔✔The term "false, misleading, or deceptive acts or practices" includes: - ✔✔Using
deceptive representations or designations of geographic origin in connection with goods
or services; representing that goods or services have sponsorship, approval,
characteristics, ingredients, uses, benefits, or quantities which they do not have or that
a person has a sponsorship, approval, status, affiliation, or connection which he does
not;
✔✔The term "false, misleading, or deceptive acts or practices" includes: -
✔✔Representing that goods are original or new if they are deteriorated, reconditioned,
reclaimed, used or secondhand; representing that goods or services are of a particular
standard, quality, or grade, or that goods are of a particular style of model, if they are of
another; disparaging the goods, services, or business of another by false or misleading
representation of facts;
✔✔The term "false, misleading, or deceptive acts or practices" includes: -
✔✔Advertising goods or services with intent not to sell them as advertised; advertising
goods or services with intent not to supply a reasonable expectable public demand,
unless the advertisements disclosed a limitation of quantity; making false or misleading
statements of fact concerning the reasons for, existence of, or amount of price
reductions;
✔✔True/False: In a sale by auction, if goods are put up in lots, eat lot is the subject of a
separate sale. - ✔✔True
✔✔When is a sale by auction complete? - ✔✔When the auctioneer so announces by
the fall of the hammer or in other customary manner.
✔✔What happens if a bid is made while the hammer is falling? - ✔✔The auctioneer in
their discretion may reopen the bidding or declare the goods sold under the bid on
which the hammer was falling.
✔✔True/False: A sale by auction is without reserve unless the goods are in explicit
terms put up with reserve. - ✔✔False; by default auction sales are with reserve.
✔✔How long does a bidder have retract their bid? - ✔✔Until the auctioneer's
announcement of completion of the sale. A retraction does not revive any previous bid.
✔✔True/False: If the auctioneer knowingly receives a bid on the seller's behalf or the
seller makes or procures such a bid, and notice has not been given that liberty for such
bidding is reserved, the buyer may at his option avoid the sale or take the goods at the
price of the last good faith bid prior to the completion of the sale. - ✔✔True
✔✔Who is the purchaser in an auction? - ✔✔The purchaser is the highest bidder.
