Page 1 of 35
INDIANA AUCTIONEER EXAM STUDY GUIDE QUESTIONS AND
CORRECT ANSWERS (VERIFIED) LATEST UPDATE
Terms in this set (236) Q & A
Absolute Auction
- answer- also known as a no-reserve auction, it is an auction in which there is no reserve or
restriction on price. Goods cannot be withdrawn once bidding is opened UNLESS no bid is
made within a reasonable time.
Reserve Auction
- answer- an auction in which a seller reserves the right to accept or reject the highest bid
within a predetermined time. ALL AUCTIONS ARE WITH RESERVE UNLESS OTHERWISE STATED.
Auctioneers can withdraw goods at any time until the completion of the sale. Auctioneer can
bid on behalf of the seller up to amount of reserve price.
trust or escrow account
- answer- Must be a separate account from the auctioneer's personal bank account, used for
all funds belonging to others. Deposits must be within 48 hours or the next business day
Recovery Fund
- answer- maintained by the Auction Committee, requirements for payment out of the fund,
required amounts in the fund
, Page 2 of 35
Escrow account violations
- answer- commingling of funds, using or borrowing from the account, inadequate records for
account activity, and not having an escrow account
Auction licenses
- answer- Auction houses need their own license, need auctioneer license,
Chapter 7 Bankruptcy
- answer- LIQUIDATION. debtor unable/unwilling to pay debt. All non-exempt property is lost
to creditors, discharge of debts given quickly, not discharged-taxes, education, fraud, fines,
damages. May file at beginning of every seventh year
Chapter 13 Bankruptcy
- answer- RE-ORGANIZATION. Debtor desires to repay creditors, must have regular income for
repayment plan, able to keep property if debt cured in reasonable time, discharge at end of
plan, not discharged- support and long term secured debt
Chapter 12 Bankruptcy
- answer- FARMS
Chapter 11 Bankruptcy
- answer- BUSINESS reorganization.
The bankruptcy court system
- answer- district court with 13 region (they handle appeals from bankruptcy court,) U.S.
, Page 3 of 35
Trustee program. The goal of the Bankruptcy court is to maximize return for unsecured
creditors
secure creditors
- answer- The secured creditor holds priority on debt collection from the property on which it
holds a lien, backed by collateral. Creditors must be notified within 45 days before the auction
date.
unsecure creditors
- answer- The unsecured creditor gets no such protection; its best method of repayment from
its debtor is voluntary repayment. Somebody that lends money out without collateral
Bankruptcy advertising requirements
- answer- must notify the creditors of sale date at least 20 days prior, leased equipment-what
can be sold, lease purchase,
Bankruptcy proceeds
- answer- must go to trustee and list accounts receivable
Problems with bankruptcy auctions
- answer- debts exceed property, threat of lawsuit, retained rights, transfers to insiders.
Zoning Codes
- answer- Dictate the types of businesses and buildings allowed in specific geographic areas
, Page 4 of 35
Tie bids
- answer- open up bidding to only those two bidders only, not the whole crowd
Types of licenses
- answer- auctioneer (individual,) auction house license, auction company or business,
apprentice, real estate sales,
Record Keeping
- answer- Auction companies must keep their records (written contracts) for a period of two
years from the date of the auction.
Contracts
- answer- must be in writing to be enforceable (only under the statute of frauds,) should have
time limitations, and must be communicated to the offeree. Signee must be of legal age, must
be mentally competent, and must not be intoxicated or under the influence.
Required notices to the auctioneer commission
- answer- address change
Does a sign of the auctioneer's license number need to be visible in the auction house?
- answer- True
INDIANA AUCTIONEER EXAM STUDY GUIDE QUESTIONS AND
CORRECT ANSWERS (VERIFIED) LATEST UPDATE
Terms in this set (236) Q & A
Absolute Auction
- answer- also known as a no-reserve auction, it is an auction in which there is no reserve or
restriction on price. Goods cannot be withdrawn once bidding is opened UNLESS no bid is
made within a reasonable time.
Reserve Auction
- answer- an auction in which a seller reserves the right to accept or reject the highest bid
within a predetermined time. ALL AUCTIONS ARE WITH RESERVE UNLESS OTHERWISE STATED.
Auctioneers can withdraw goods at any time until the completion of the sale. Auctioneer can
bid on behalf of the seller up to amount of reserve price.
trust or escrow account
- answer- Must be a separate account from the auctioneer's personal bank account, used for
all funds belonging to others. Deposits must be within 48 hours or the next business day
Recovery Fund
- answer- maintained by the Auction Committee, requirements for payment out of the fund,
required amounts in the fund
, Page 2 of 35
Escrow account violations
- answer- commingling of funds, using or borrowing from the account, inadequate records for
account activity, and not having an escrow account
Auction licenses
- answer- Auction houses need their own license, need auctioneer license,
Chapter 7 Bankruptcy
- answer- LIQUIDATION. debtor unable/unwilling to pay debt. All non-exempt property is lost
to creditors, discharge of debts given quickly, not discharged-taxes, education, fraud, fines,
damages. May file at beginning of every seventh year
Chapter 13 Bankruptcy
- answer- RE-ORGANIZATION. Debtor desires to repay creditors, must have regular income for
repayment plan, able to keep property if debt cured in reasonable time, discharge at end of
plan, not discharged- support and long term secured debt
Chapter 12 Bankruptcy
- answer- FARMS
Chapter 11 Bankruptcy
- answer- BUSINESS reorganization.
The bankruptcy court system
- answer- district court with 13 region (they handle appeals from bankruptcy court,) U.S.
, Page 3 of 35
Trustee program. The goal of the Bankruptcy court is to maximize return for unsecured
creditors
secure creditors
- answer- The secured creditor holds priority on debt collection from the property on which it
holds a lien, backed by collateral. Creditors must be notified within 45 days before the auction
date.
unsecure creditors
- answer- The unsecured creditor gets no such protection; its best method of repayment from
its debtor is voluntary repayment. Somebody that lends money out without collateral
Bankruptcy advertising requirements
- answer- must notify the creditors of sale date at least 20 days prior, leased equipment-what
can be sold, lease purchase,
Bankruptcy proceeds
- answer- must go to trustee and list accounts receivable
Problems with bankruptcy auctions
- answer- debts exceed property, threat of lawsuit, retained rights, transfers to insiders.
Zoning Codes
- answer- Dictate the types of businesses and buildings allowed in specific geographic areas
, Page 4 of 35
Tie bids
- answer- open up bidding to only those two bidders only, not the whole crowd
Types of licenses
- answer- auctioneer (individual,) auction house license, auction company or business,
apprentice, real estate sales,
Record Keeping
- answer- Auction companies must keep their records (written contracts) for a period of two
years from the date of the auction.
Contracts
- answer- must be in writing to be enforceable (only under the statute of frauds,) should have
time limitations, and must be communicated to the offeree. Signee must be of legal age, must
be mentally competent, and must not be intoxicated or under the influence.
Required notices to the auctioneer commission
- answer- address change
Does a sign of the auctioneer's license number need to be visible in the auction house?
- answer- True
