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Tennessee (TN) Affiliate Auctioneer Certification
Exam | Latest Verified Questions and Detailed
Answers
OVERVIEW DESCRIPTION
This Comprehensive set of multiple choice questions is designed for the Tennessee
Affiliate Auctioneer Exam, a mandatory certification assessment administered by PSI
that evaluates a candidate’s knowledge of Tennessee auction laws, ethical standards,
contracts, and business practices. The exam covers key content areas including
Tennessee Code Annotated Title 47 (UCC) and Title 62 (Auctioneer Licensing), auction
law and ethics, listing and sales contracts, agency disclosure, escrow and trust fund
regulations, auction mathematics, and general auction procedures such as advertising
requirements and specialty auctions. Candidates must complete 16 hours of approved
pre-licensing education before sitting for the exam, which costs $150 and remains
valid for one year.
QUESTION 1
In Tennessee, which title of the Code Annotated governs the licensing and regulation of
auctioneers?
A) Title 47
B) Title 62
C) Title 55
D) Title 39
CORRECT ANSWER: B
EXPERT RATIONALE: Title 62, Chapter 19 specifically addresses Auctioneer Licensing in
Tennessee, while Title 47 contains the Uniform Commercial Code.
QUESTION 2
What is the maximum number of hours of approved pre-licensing education required
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for an affiliate auctioneer applicant?
A) 8 hours
B) 16 hours
C) 30 hours
D) 80 hours
CORRECT ANSWER: B
EXPERT RATIONALE: Tennessee requires an affiliate auctioneer applicant to complete 16
hours of approved education covering auction laws, ethics, and business practices.
QUESTION 3
Under the UCC, a sale by auction is complete when the auctioneer so announces by the
fall of the hammer or in what other customary manner?
A) When the high bidder signs the contract
B) When the auctioneer accepts payment
C) When the gavel falls or other customary manner
D) When the seller confirms the sale
CORRECT ANSWER: C
EXPERT RATIONALE: UCC §2-328 provides that a sale by auction is complete when the
auctioneer announces its completion by the fall of the hammer or other customary
manner.
QUESTION 4
An auction where the seller retains the right to reject any and all bids is known as what
type of auction?
A) Absolute auction
B) Reserve auction
C) Without reserve auction
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D) Confirmation auction
CORRECT ANSWER: B
EXPERT RATIONALE: In a reserve auction, the seller may reserve the right to refuse bids
and is not obligated to sell unless a minimum price is met or the bid is accepted.
QUESTION 5
Which of the following is a key element that must be included in a written listing
agreement in Tennessee?
A) The auctioneer's commission rate only
B) A description of the property and terms of sale
C) The buyer's premium amount
D) The date of the next auction
CORRECT ANSWER: B
EXPERT RATIONALE: A listing agreement must clearly identify the property and set forth
the terms under which it will be sold, including commission and any conditions.
QUESTION 6
According to Tennessee law, an escrow account used for auction proceeds must be
maintained as what type of account?
A) Personal savings account
B) Non-interest-bearing trust account
C) Interest-bearing account for the auctioneer's benefit
D) General business operating account
CORRECT ANSWER: B
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EXPERT RATIONALE: Auctioneers must keep earnest money and sale proceeds in a non-
interest-bearing trust or escrow account unless otherwise agreed in writing, to avoid
commingling.
QUESTION 7
An affiliate auctioneer sells a property for 50,000witha10A)50,000witha10A)50,000
B) 55,000C)55,000C)45,000
D) $60,000
CORRECT ANSWER: B
EXPERT RATIONALE: Total buyer cost = hammer price + (hammer price × buyer's
premium percentage) = 50,000+50,000+5,000 = $55,000.
QUESTION 8
In Tennessee, who may issue an affiliate auctioneer license?
A) The county clerk
B) The Tennessee Real Estate Commission
C) The Tennessee Auctioneer Commission
D) The Secretary of State
CORRECT ANSWER: C
EXPERT RATIONALE: The Tennessee Auctioneer Commission, under the Department of
Commerce and Insurance, regulates auctioneer licensing.
QUESTION 9
Which of the following is prohibited in an absolute auction?
A) Advertising the auction as “absolute”
B) Seller bidding or employing a straw bidder
C) Requiring a bidder deposit
Tennessee (TN) Affiliate Auctioneer Certification
Exam | Latest Verified Questions and Detailed
Answers
OVERVIEW DESCRIPTION
This Comprehensive set of multiple choice questions is designed for the Tennessee
Affiliate Auctioneer Exam, a mandatory certification assessment administered by PSI
that evaluates a candidate’s knowledge of Tennessee auction laws, ethical standards,
contracts, and business practices. The exam covers key content areas including
Tennessee Code Annotated Title 47 (UCC) and Title 62 (Auctioneer Licensing), auction
law and ethics, listing and sales contracts, agency disclosure, escrow and trust fund
regulations, auction mathematics, and general auction procedures such as advertising
requirements and specialty auctions. Candidates must complete 16 hours of approved
pre-licensing education before sitting for the exam, which costs $150 and remains
valid for one year.
QUESTION 1
In Tennessee, which title of the Code Annotated governs the licensing and regulation of
auctioneers?
A) Title 47
B) Title 62
C) Title 55
D) Title 39
CORRECT ANSWER: B
EXPERT RATIONALE: Title 62, Chapter 19 specifically addresses Auctioneer Licensing in
Tennessee, while Title 47 contains the Uniform Commercial Code.
QUESTION 2
What is the maximum number of hours of approved pre-licensing education required
,2|Page
for an affiliate auctioneer applicant?
A) 8 hours
B) 16 hours
C) 30 hours
D) 80 hours
CORRECT ANSWER: B
EXPERT RATIONALE: Tennessee requires an affiliate auctioneer applicant to complete 16
hours of approved education covering auction laws, ethics, and business practices.
QUESTION 3
Under the UCC, a sale by auction is complete when the auctioneer so announces by the
fall of the hammer or in what other customary manner?
A) When the high bidder signs the contract
B) When the auctioneer accepts payment
C) When the gavel falls or other customary manner
D) When the seller confirms the sale
CORRECT ANSWER: C
EXPERT RATIONALE: UCC §2-328 provides that a sale by auction is complete when the
auctioneer announces its completion by the fall of the hammer or other customary
manner.
QUESTION 4
An auction where the seller retains the right to reject any and all bids is known as what
type of auction?
A) Absolute auction
B) Reserve auction
C) Without reserve auction
,3|Page
D) Confirmation auction
CORRECT ANSWER: B
EXPERT RATIONALE: In a reserve auction, the seller may reserve the right to refuse bids
and is not obligated to sell unless a minimum price is met or the bid is accepted.
QUESTION 5
Which of the following is a key element that must be included in a written listing
agreement in Tennessee?
A) The auctioneer's commission rate only
B) A description of the property and terms of sale
C) The buyer's premium amount
D) The date of the next auction
CORRECT ANSWER: B
EXPERT RATIONALE: A listing agreement must clearly identify the property and set forth
the terms under which it will be sold, including commission and any conditions.
QUESTION 6
According to Tennessee law, an escrow account used for auction proceeds must be
maintained as what type of account?
A) Personal savings account
B) Non-interest-bearing trust account
C) Interest-bearing account for the auctioneer's benefit
D) General business operating account
CORRECT ANSWER: B
, 4|Page
EXPERT RATIONALE: Auctioneers must keep earnest money and sale proceeds in a non-
interest-bearing trust or escrow account unless otherwise agreed in writing, to avoid
commingling.
QUESTION 7
An affiliate auctioneer sells a property for 50,000witha10A)50,000witha10A)50,000
B) 55,000C)55,000C)45,000
D) $60,000
CORRECT ANSWER: B
EXPERT RATIONALE: Total buyer cost = hammer price + (hammer price × buyer's
premium percentage) = 50,000+50,000+5,000 = $55,000.
QUESTION 8
In Tennessee, who may issue an affiliate auctioneer license?
A) The county clerk
B) The Tennessee Real Estate Commission
C) The Tennessee Auctioneer Commission
D) The Secretary of State
CORRECT ANSWER: C
EXPERT RATIONALE: The Tennessee Auctioneer Commission, under the Department of
Commerce and Insurance, regulates auctioneer licensing.
QUESTION 9
Which of the following is prohibited in an absolute auction?
A) Advertising the auction as “absolute”
B) Seller bidding or employing a straw bidder
C) Requiring a bidder deposit
