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Tennessee (TN) Principal Auctioneer License
Exam | Latest Verified Questions and Detailed
Answers
OVERVIEW DESCRIPTION
This Comprehensive set of multiple choice questions is designed for the Tennessee
Principal Auctioneer Exam, administered by PSI, which assesses advanced knowledge
required for upgrading from an affiliate auctioneer license to a principal auctioneer
license. The exam focuses on the practical application of Tennessee auctioneer law
(TCA § 62-19-101 et seq.) and Commission rules, including licensing requirements,
prohibited acts, and affiliate supervision. It evaluates understanding of auction listing
contracts, buyer’s terms, and general contract law, as well as escrow account
maintenance and fund management. Content also covers advertising regulations and
disclosure of buyer’s premiums, legal definitions of absolute auctions and auctions
with reserve, the Uniform Commercial Code (UCC 2-328) governing sales by auction,
and proper procedures for preparing closing statements and settlement. Additionally,
the exam tests knowledge of a principal auctioneer’s professional responsibility, firm
management, and the specific supervision duties required when operating an auction
business.
Tennessee Auctioneer Law (TCA § 62-19-101 et seq.)
QUESTION 1
Under Tennessee Code Annotated § 62-19-101, which of the following best defines a
"principal auctioneer"?
A. An individual who only calls bids at an auction.
B. An individual who arranges, manages, sponsors, advertises, or carries out auctions as
part of their business.
C. An individual who is responsible for the management and supervision of a firm.
D. An individual employed by a principal auctioneer to deal or engage in auctioneering
activities.
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CORRECT ANSWER: C
EXPERT RATIONALE: T.C.A. § 62-19-101(9) explicitly defines a "principal auctioneer" as
the auctioneer responsible for the management and supervision of a firm. Option B
describes a "firm," and option D describes an "affiliate auctioneer."
QUESTION 2
According to T.C.A. § 62-19-101(2), which of the following correctly describes an
"auction"?
A. A private negotiation between a buyer and seller.
B. A sealed bid process without an audience.
C. A sales transaction conducted by oral or written exchange between an auctioneer and
members of the audience, culminating in acceptance of the highest or most favorable
offer.
D. Any sale of goods where the price is set by the seller.
CORRECT ANSWER: C
EXPERT RATIONALE: The statutory definition of an auction under T.C.A. § 62-19-101(2)
requires an exchange between an auctioneer and audience, involving a series of
invitations for offers, culminating in the acceptance of the highest or most favorable
offer.
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QUESTION 3
Under T.C.A. § 62-19-102(a)(1), it is unlawful for a person to:
A. Advertise an auction without a valid license.
B. Act as, advertise as, or represent to be an auctioneer without a valid license.
C. Attend an auction without a valid license.
D. Sell goods without a valid auctioneer license.
CORRECT ANSWER: B
EXPERT RATIONALE: T.C.A. § 62-19-102(a)(1) makes it unlawful to act as, advertise as, or
represent to be an auctioneer without holding a valid license issued by the commission.
QUESTION 4
Which Tennessee statute requires that a person conducting an auction of real property
must also be licensed as a broker or affiliate broker under Chapter 13 of Title 62?
A. T.C.A. § 62-19-101
B. T.C.A. § 62-19-102(a)(2)
C. T.C.A. § 62-19-111
D. T.C.A. § 62-19-112
CORRECT ANSWER: B
EXPERT RATIONALE: T.C.A. § 62-19-102(a)(2) states that to conduct or offer to conduct
an auction of real property, a person must be licensed as an auctioneer or affiliate
auctioneer and as a broker or affiliate broker under Chapter 13.
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QUESTION 5
Under T.C.A. § 62-19-102(b), all auctions arranged by or through a principal auctioneer
must be conducted exclusively by:
A. Any competent adult.
B. Individuals licensed under the Auctioneer chapter.
C. The principal auctioneer personally.
D. Affiliate auctioneers only.
CORRECT ANSWER: B
EXPERT RATIONALE: T.C.A. § 62-19-102(b) requires that all auctions arranged by or
through a principal auctioneer be conducted exclusively by individuals licensed under
Title 62, Chapter 19.
QUESTION 6
According to T.C.A. § 62-19-103, which of the following is exempt from the auctioneer
licensing requirements?
A. A person selling their own personal property.
B. An individual who generates less than $25,000 in revenue per calendar year from
online auctions.
C. A person conducting a charity auction.
D. An individual selling goods on consignment.
CORRECT ANSWER: B
Tennessee (TN) Principal Auctioneer License
Exam | Latest Verified Questions and Detailed
Answers
OVERVIEW DESCRIPTION
This Comprehensive set of multiple choice questions is designed for the Tennessee
Principal Auctioneer Exam, administered by PSI, which assesses advanced knowledge
required for upgrading from an affiliate auctioneer license to a principal auctioneer
license. The exam focuses on the practical application of Tennessee auctioneer law
(TCA § 62-19-101 et seq.) and Commission rules, including licensing requirements,
prohibited acts, and affiliate supervision. It evaluates understanding of auction listing
contracts, buyer’s terms, and general contract law, as well as escrow account
maintenance and fund management. Content also covers advertising regulations and
disclosure of buyer’s premiums, legal definitions of absolute auctions and auctions
with reserve, the Uniform Commercial Code (UCC 2-328) governing sales by auction,
and proper procedures for preparing closing statements and settlement. Additionally,
the exam tests knowledge of a principal auctioneer’s professional responsibility, firm
management, and the specific supervision duties required when operating an auction
business.
Tennessee Auctioneer Law (TCA § 62-19-101 et seq.)
QUESTION 1
Under Tennessee Code Annotated § 62-19-101, which of the following best defines a
"principal auctioneer"?
A. An individual who only calls bids at an auction.
B. An individual who arranges, manages, sponsors, advertises, or carries out auctions as
part of their business.
C. An individual who is responsible for the management and supervision of a firm.
D. An individual employed by a principal auctioneer to deal or engage in auctioneering
activities.
,2|Page
CORRECT ANSWER: C
EXPERT RATIONALE: T.C.A. § 62-19-101(9) explicitly defines a "principal auctioneer" as
the auctioneer responsible for the management and supervision of a firm. Option B
describes a "firm," and option D describes an "affiliate auctioneer."
QUESTION 2
According to T.C.A. § 62-19-101(2), which of the following correctly describes an
"auction"?
A. A private negotiation between a buyer and seller.
B. A sealed bid process without an audience.
C. A sales transaction conducted by oral or written exchange between an auctioneer and
members of the audience, culminating in acceptance of the highest or most favorable
offer.
D. Any sale of goods where the price is set by the seller.
CORRECT ANSWER: C
EXPERT RATIONALE: The statutory definition of an auction under T.C.A. § 62-19-101(2)
requires an exchange between an auctioneer and audience, involving a series of
invitations for offers, culminating in the acceptance of the highest or most favorable
offer.
,3|Page
QUESTION 3
Under T.C.A. § 62-19-102(a)(1), it is unlawful for a person to:
A. Advertise an auction without a valid license.
B. Act as, advertise as, or represent to be an auctioneer without a valid license.
C. Attend an auction without a valid license.
D. Sell goods without a valid auctioneer license.
CORRECT ANSWER: B
EXPERT RATIONALE: T.C.A. § 62-19-102(a)(1) makes it unlawful to act as, advertise as, or
represent to be an auctioneer without holding a valid license issued by the commission.
QUESTION 4
Which Tennessee statute requires that a person conducting an auction of real property
must also be licensed as a broker or affiliate broker under Chapter 13 of Title 62?
A. T.C.A. § 62-19-101
B. T.C.A. § 62-19-102(a)(2)
C. T.C.A. § 62-19-111
D. T.C.A. § 62-19-112
CORRECT ANSWER: B
EXPERT RATIONALE: T.C.A. § 62-19-102(a)(2) states that to conduct or offer to conduct
an auction of real property, a person must be licensed as an auctioneer or affiliate
auctioneer and as a broker or affiliate broker under Chapter 13.
, 4|Page
QUESTION 5
Under T.C.A. § 62-19-102(b), all auctions arranged by or through a principal auctioneer
must be conducted exclusively by:
A. Any competent adult.
B. Individuals licensed under the Auctioneer chapter.
C. The principal auctioneer personally.
D. Affiliate auctioneers only.
CORRECT ANSWER: B
EXPERT RATIONALE: T.C.A. § 62-19-102(b) requires that all auctions arranged by or
through a principal auctioneer be conducted exclusively by individuals licensed under
Title 62, Chapter 19.
QUESTION 6
According to T.C.A. § 62-19-103, which of the following is exempt from the auctioneer
licensing requirements?
A. A person selling their own personal property.
B. An individual who generates less than $25,000 in revenue per calendar year from
online auctions.
C. A person conducting a charity auction.
D. An individual selling goods on consignment.
CORRECT ANSWER: B
