ARKANSAS AUCTIONEER STUDY GUIDE QUESTIONS AND
SOLUTIONS 2025/2026 GRADED A+
✔✔Bid Assistants - ✔✔Individuals of a live auction team whose primary responsibility is
to accurately interpret and effectively communicate buyer participation to their
auctioneer. They should also be qualified to assist prospective bidders with the
necessary information to make a better informed buying decision. Also known as
"ringmen", "bid spotters" or "groundsmen."
✔✔Bid Caller - ✔✔The person who actually "calls," "cries" or "auctions" the property at
an auction, recognizing bidders and acknowledging the highest bidder. Commonly
known as the auctioneer.
✔✔Bid Rigging - ✔✔The unlawful practice whereby two or more people agree not to bid
against one another so as to deflate value. See "Collusion".
✔✔Bidder Number - ✔✔The number issued to each person who registers at an auction.
✔✔Bidder Package - ✔✔The package of information and instructions pertaining to the
property to be sold at an auction event obtained by prospective bidders at an auction.
Also referred to as "bidder packet" or "due diligence packet."
✔✔Bidder's Choice - ✔✔A method of sale whereby the successful high bidder wins the
right to choose an asset or assets from a grouping of similar or like-kind assets. After
the high bidder's selection, the asset is deleted from the group, and the second round of
bidding commences, with the high bidder in round two choosing an asset, which is then
deleted from the group and so on, until all assets are sold. Also known as "Buyer's
Choice."
✔✔Bookkeeper or Clerk - ✔✔The individual responsible for the accounting and
paperwork at an auction sale.
✔✔Broker Participation - ✔✔An arrangement for third-party brokers to register potential
bidders for properties being sold at auction for a commission paid by the owner of the
property or the auction firm.
✔✔Buyer's Broker - ✔✔A real estate broker who represents the buyer and, as the agent
of the buyer, is normally paid for his/her services by the buyer.
✔✔Buyer's Premium - ✔✔An advertised percentage of the high bid or flat fee added to
the high bid to determine the total contract price to be paid by the buyer.
✔✔Caravan Auctions - ✔✔A series of on-site auctions advertised through a common
promotional campaign.
, ✔✔Carrying Charges - ✔✔The costs involved in holding a property that is intended to
produce income (either by sale or rent) but has not yet done so, i.e., insurance, taxes,
maintenance, management. Also known as "holding costs".
✔✔Catalog or Brochure - ✔✔A publication advertising and describing the property(ies)
available for sale at public auction, often including photographs, property descriptions
and the terms and conditions of the sale.
✔✔Caveat Emptor - ✔✔A Latin term meaning "let the buyer beware." A legal maxim
stating that the buyer takes the risk regarding quality or condition of the property
purchased, unless protected by warranty.
✔✔Certified Auctioneers Institute (CAI) - ✔✔The professional designation awarded to
practicing auctioneers who meet the experiential, educational and ethical standards set
by the NAA Education Institute. In order to be granted the CAI designation, auctioneer
scholars must have been practicing full-time auctioneers for at least two year (prior to
attending the institute), attend all three years of CAI with more than 120 classroom
hours, complete all special projects and complete 24 hours of continuing education
every three years.
✔✔Certified Estate Specialist (CES) - ✔✔A professional designation awarded by the
NAA Education Institute to help professional auctioneers understand how to properly
conduct and deal with the settling of estates. The course also educates professional
auctioneers on working with family members and dealing with lawyers and accountants.
In order to be designated with the CES, auctioneer-scholars are required to complete 21
classroom hours and complete 24 hours of continuing education every three years.
✔✔Clerk - ✔✔An individual employed by the principal auctioneer or auction firm to
record what is sold and to whom and for what price.
✔✔Collusion - ✔✔The unlawful practice whereby two or more people agree not to bid
against one another so as to deflate value or when the auctioneer accepts a fictitious
bid on behalf of the seller so as to manipulate or inflate the price of the property.
✔✔Commission - ✔✔The fee charged to the seller by the auctioneer for providing
services, usually a percentage of the gross selling price of the property established by
contract (the listing agreement) prior to the auction.
✔✔Conditions of Sale - ✔✔The legal terms that govern the conduct of an auction,
including acceptable methods of payment, terms, buyer's premiums, possession,
reserves and any other limiting factors of an auction. Usually included in published
advertisements or announced by the auctioneer prior to the start of the auction. Also
known as "Terms & Conditions".
SOLUTIONS 2025/2026 GRADED A+
✔✔Bid Assistants - ✔✔Individuals of a live auction team whose primary responsibility is
to accurately interpret and effectively communicate buyer participation to their
auctioneer. They should also be qualified to assist prospective bidders with the
necessary information to make a better informed buying decision. Also known as
"ringmen", "bid spotters" or "groundsmen."
✔✔Bid Caller - ✔✔The person who actually "calls," "cries" or "auctions" the property at
an auction, recognizing bidders and acknowledging the highest bidder. Commonly
known as the auctioneer.
✔✔Bid Rigging - ✔✔The unlawful practice whereby two or more people agree not to bid
against one another so as to deflate value. See "Collusion".
✔✔Bidder Number - ✔✔The number issued to each person who registers at an auction.
✔✔Bidder Package - ✔✔The package of information and instructions pertaining to the
property to be sold at an auction event obtained by prospective bidders at an auction.
Also referred to as "bidder packet" or "due diligence packet."
✔✔Bidder's Choice - ✔✔A method of sale whereby the successful high bidder wins the
right to choose an asset or assets from a grouping of similar or like-kind assets. After
the high bidder's selection, the asset is deleted from the group, and the second round of
bidding commences, with the high bidder in round two choosing an asset, which is then
deleted from the group and so on, until all assets are sold. Also known as "Buyer's
Choice."
✔✔Bookkeeper or Clerk - ✔✔The individual responsible for the accounting and
paperwork at an auction sale.
✔✔Broker Participation - ✔✔An arrangement for third-party brokers to register potential
bidders for properties being sold at auction for a commission paid by the owner of the
property or the auction firm.
✔✔Buyer's Broker - ✔✔A real estate broker who represents the buyer and, as the agent
of the buyer, is normally paid for his/her services by the buyer.
✔✔Buyer's Premium - ✔✔An advertised percentage of the high bid or flat fee added to
the high bid to determine the total contract price to be paid by the buyer.
✔✔Caravan Auctions - ✔✔A series of on-site auctions advertised through a common
promotional campaign.
, ✔✔Carrying Charges - ✔✔The costs involved in holding a property that is intended to
produce income (either by sale or rent) but has not yet done so, i.e., insurance, taxes,
maintenance, management. Also known as "holding costs".
✔✔Catalog or Brochure - ✔✔A publication advertising and describing the property(ies)
available for sale at public auction, often including photographs, property descriptions
and the terms and conditions of the sale.
✔✔Caveat Emptor - ✔✔A Latin term meaning "let the buyer beware." A legal maxim
stating that the buyer takes the risk regarding quality or condition of the property
purchased, unless protected by warranty.
✔✔Certified Auctioneers Institute (CAI) - ✔✔The professional designation awarded to
practicing auctioneers who meet the experiential, educational and ethical standards set
by the NAA Education Institute. In order to be granted the CAI designation, auctioneer
scholars must have been practicing full-time auctioneers for at least two year (prior to
attending the institute), attend all three years of CAI with more than 120 classroom
hours, complete all special projects and complete 24 hours of continuing education
every three years.
✔✔Certified Estate Specialist (CES) - ✔✔A professional designation awarded by the
NAA Education Institute to help professional auctioneers understand how to properly
conduct and deal with the settling of estates. The course also educates professional
auctioneers on working with family members and dealing with lawyers and accountants.
In order to be designated with the CES, auctioneer-scholars are required to complete 21
classroom hours and complete 24 hours of continuing education every three years.
✔✔Clerk - ✔✔An individual employed by the principal auctioneer or auction firm to
record what is sold and to whom and for what price.
✔✔Collusion - ✔✔The unlawful practice whereby two or more people agree not to bid
against one another so as to deflate value or when the auctioneer accepts a fictitious
bid on behalf of the seller so as to manipulate or inflate the price of the property.
✔✔Commission - ✔✔The fee charged to the seller by the auctioneer for providing
services, usually a percentage of the gross selling price of the property established by
contract (the listing agreement) prior to the auction.
✔✔Conditions of Sale - ✔✔The legal terms that govern the conduct of an auction,
including acceptable methods of payment, terms, buyer's premiums, possession,
reserves and any other limiting factors of an auction. Usually included in published
advertisements or announced by the auctioneer prior to the start of the auction. Also
known as "Terms & Conditions".
