North Carolina Licensed Auctioneer

Which board is responsible for licensing auctioneers in North Carolina?

• ANC Real Estate Commission
• BNC Auctioneer Licensing Board
• CNC Department of Commerce
• DNC Secretary of State

What chapter of the North Carolina General Statutes governs auctioneer licensing?

• AChapter 47 — Estates
• BChapter 66 — Commerce
• CChapter 85B — Auctioneers
• DChapter 93A — Real Estate License Law

What is the passing score for the North Carolina auctioneer licensing exam?

• A60%
• B70%
• C75%
• D80%

How often is the North Carolina auctioneer licensing exam offered?

• AMonthly
• B4 times per year
• C6 times per year
• DOn demand

What is the exam fee for the North Carolina auctioneer licensing exam?

• A$25
• B$50
• C$100
• D$150

Under NC General Statutes Chapter 85B, which of the following persons is exempt from auctioneer licensing requirements?

• AA person who regularly conducts charity auctions for compensation
• BA person acting under a court order to sell property
• CA real estate agent selling property at a public auction
• DA person who conducts more than two auctions per year

In North Carolina, operating as an auctioneer without a valid license is a:

• ACivil infraction with a $50 fine
• BMisdemeanor under NC law
• CWarning offense for the first occurrence
• DFederal violation

The NC Auctioneer Licensing Board has the authority to take which of the following disciplinary actions?

• AImpose prison sentences on auctioneers
• BSuspend, revoke, or refuse to renew an auctioneer's license
• CGarnish an auctioneer's wages
• DFile criminal charges directly

Under North Carolina law, what must an auctioneer do with auction proceeds?

• ADeposit them in a personal savings account
• BMaintain them in a trust or escrow account separate from personal funds
• CHold them in cash at the auction facility
• DImmediately wire them to the seller

Which of the following is a ground for denial of an auctioneer license application in North Carolina?

• AThe applicant is not a North Carolina resident
• BThe applicant has been convicted of a crime involving fraud or dishonesty
• CThe applicant has no prior auction experience
• DThe applicant is over 60 years old

In North Carolina, the term 'apprentice auctioneer' refers to:

• AAn unlicensed person who assists with auction setup
• BA person licensed to conduct auctions under the supervision of a licensed auctioneer
• CA bidder who is new to auctions
• DA clerk who records auction transactions

Under NC law, what is the time limit for completing the auctioneer licensing exam?

• A30 minutes
• B1 hour
• C2 hours
• D3 hours

A North Carolina auctioneer's license must be renewed:

• AEvery year
• BEvery two years
• CEvery five years
• DThe license is permanent once issued

Which of the following is a key element of the bid calling process?

• AReading the complete legal description of each item
• BEstablishing a rhythmic chant that clearly communicates bid amounts and increments
• CSinging popular songs between bids
• DSpeaking as fast as possible regardless of clarity

In bid calling, 'filler words' are used to:

• ADistract bidders from the actual price
• BMaintain rhythm and flow between bid amounts
• CConfuse competing bidders
• DAdd legal terms to the auction record

During bid calling, the auctioneer should clearly communicate which two key pieces of information?

• AThe seller's name and the item's original cost
• BThe current bid amount and the next bid being sought
• CThe auctioneer's commission rate and the buyer's premium
• DThe number of bidders and the total items remaining

What is the primary ethical concern with 'running the bid' (taking phantom bids from non-existent bidders)?

• AIt slows down the auction process
• BIt artificially inflates prices and defrauds legitimate bidders
• CIt is only a concern in online auctions
• DIt reduces the auctioneer's commission

Under NC law, what is the auctioneer's primary fiduciary duty?

• ATo maximize the auctioneer's own profits
• BTo act in the best interest of the seller (principal)
• CTo ensure the buyer gets the lowest possible price
• DTo follow instructions from the NC Auctioneer Licensing Board on each sale

A North Carolina auctioneer is conducting an auction and discovers that a consigned item actually belongs to a third party who did not authorize the sale. What should the auctioneer do?

• AProceed with the sale since the consignor signed the contract
• BWithdraw the item from the auction and investigate the ownership claim
• CSell the item and let the parties resolve ownership later
• DNotify buyers that title may be disputed but continue the sale

Which of the following best describes shill bidding under NC law?

• ABidding by telephone on behalf of an absent buyer
• BHaving someone bid to artificially drive up the price for the benefit of the seller or au…
• CThe auctioneer setting an opening bid amount
• DA buyer placing multiple bids on the same item

Under NC ethics standards, an auctioneer who has a personal interest in property being auctioned must:

• AWithdraw from the auction entirely
• BDisclose the interest to all parties and obtain informed consent
• CKeep the interest confidential to avoid influencing bids
• DDonate any profit from the sale to charity

What is the auctioneer's ethical duty regarding trust account management in North Carolina?

• AKeep all funds in one combined business account for simplicity
• BMaintain auction proceeds in a separate trust account and never commingle with personal f…
• CTrust accounts are optional for auctioneers who handle less than $10,000 per year
• DOnly maintain trust accounts for real estate auctions

A North Carolina auctioneer accidentally overstates an item's condition in the catalog. Upon discovering the error before the auction, the auctioneer should:

• AProceed with the auction since it was an honest mistake
• BCorrect the description and announce the correction before the item is sold
• CRemove the item from the auction permanently
• DWait to see if any buyer complains after the sale

What are the essential elements of a valid auction contract in North Carolina?

• AOnly a verbal agreement between the auctioneer and seller
• BOffer, acceptance, consideration, legal capacity, and lawful purpose
• CA notarized document filed with the NC Auctioneer Licensing Board
• DOnly a handshake agreement witnessed by two people

In drafting an auction consignment agreement in North Carolina, which of the following is a critical term to include?

• AThe guaranteed sale price for each item
• BThe commission rate, payment terms, and scope of the auctioneer's authority
• CA promise that all items will sell within 30 minutes
• DThe names of all expected bidders

When drafting terms and conditions of sale for a North Carolina auction, which of the following should be included?

• AThe auctioneer's personal home address
• BAccepted payment methods, buyer's premium, removal deadlines, and dispute resolution proc…
• CThe seller's bank account information
• DA list of the auctioneer's previous clients

Under the UCC statute of frauds, auction contracts for goods priced at what amount or more must generally be in writing?

• A$250
• B$500
• C$1,000
• D$5,000

When drafting an auction contract in North Carolina, the 'hold harmless' or indemnification clause serves to:

• AGuarantee that all items are genuine and valuable
• BProtect one party from liability for losses caused by the other party
• CRequire the buyer to pay double the hammer price
• DPrevent the seller from attending the auction

In North Carolina, if an auction contract includes an 'as is' clause, this means:

• AThe auctioneer guarantees the condition of all items
• BImplied warranties are disclaimed and the buyer accepts items in their current condition
• CThe buyer can return items within 14 days
• DThe seller must provide a written appraisal for each item

A North Carolina auctioneer drafts a contract that states 'Seller warrants clear title to all property consigned.' This clause provides the buyer with:

• AA guarantee that the items are in perfect condition
• BAn assurance that the seller legally owns the property and has the right to sell it
• CProtection against price fluctuations after the auction
• DThe right to bid on items without registering

Under UCC Article 2, when is a sale complete at auction?

• AWhen the buyer signs a receipt
• BWhen the auctioneer announces completion by the fall of the hammer or in other customary…
• CWhen the buyer makes full payment
• DWhen the item is physically delivered to the buyer

A settlement statement in a North Carolina auction should include all of the following EXCEPT:

• ATotal gross sales
• BAuctioneer's commission and fees deducted
• CThe buyer's Social Security number
• DNet proceeds payable to the seller

At a North Carolina auction, an item sells for $6,000. The auctioneer charges a 10% commission and there is a $200 advertising fee. What is the net amount due to the seller?

• A$5,000
• B$5,200
• C$5,400
• D$5,800

A buyer purchases an item for $2,500 at a North Carolina auction with a 10% buyer's premium. What is the total amount the buyer owes before tax?

• A$2,500
• B$2,625
• C$2,750
• D$2,850

A North Carolina auctioneer's settlement shows: total sales $30,000, commission at 12% ($3,600), advertising $800, insurance $200, and hauling $400. What are the net proceeds to the seller?

• A$24,000
• B$25,000
• C$25,400
• D$26,400

An auctioneer in North Carolina sells 50 lots with total hammer prices of $75,000. If the commission is 8%, what is the auctioneer's gross commission?

• A$4,500
• B$5,250
• C$6,000
• D$7,500

If North Carolina sales tax is 4.75% (state rate) and a county adds 2.25% (local rate), what is the total sales tax on a $1,000 auction purchase?

• A$47.50
• B$50.00
• C$70.00
• D$100.00

A trust account has a beginning balance of $3,000. The auctioneer deposits $18,000 from Saturday's auction and disburses $15,000 to sellers. What is the ending balance?

• A$3,000
• B$6,000
• C$15,000
• D$18,000

At an NC auction, a buyer purchases an item for $4,000 with a 15% buyer's premium and 7% sales tax on the total. What is the total amount due?

• A$4,600
• B$4,880
• C$4,922
• D$5,100

Under NC advertising rules, which of the following must be included in auction advertising?

• AThe reserve price for each item
• BThe auctioneer's name and license number
• CA complete list of every item to be sold
• DThe seller's financial statements

A North Carolina auctioneer advertises 'No Reserve — Everything Sells!' but plans to place reserve prices on some items. This is:

• AAcceptable marketing strategy
• BFalse advertising and a violation of NC law
• CLegal as long as the reserves are low
• DOnly a problem if someone complains

Under NC regulations, if a buyer's premium will be charged, when must it be disclosed?

• AOnly when the buyer asks
• BIn all advertising and again at the start of the auction
• CAfter the auction in the buyer's invoice
• DOnly in the written terms of sale

A North Carolina auctioneer uses the term 'estate sale' in advertising for an auction of items from a living person's home. Is this appropriate?

• AYes, 'estate sale' can refer to any large collection of household items
• BNo, 'estate sale' implies the property belongs to a deceased person's estate and using it…
• CYes, as long as the auctioneer believes the items are valuable
• DNo, 'estate sale' can only be used for real estate auctions

Which of the following advertising practices complies with NC Auctioneer Licensing Board rules?

• AStating 'This auction has been endorsed by the NC Auctioneer Licensing Board'
• BIncluding the auctioneer's license number, accurate descriptions, and clear terms of sale
• CUsing photos from a different, higher-quality auction to attract more bidders
• DClaiming 'All items appraised at 5x the expected selling price'

Under NC law, auction advertisements must be truthful regarding the:

• AAuctioneer's personal income
• BNature, quality, and quantity of items offered for sale
• CNumber of bidders expected to attend
• DAuctioneer's years of experience only