- | Page
Texas Auctioneer License Part 1 Exam With Verified Solutions
Question 1: Does an auctioneer need a federal firearms license?
CORRECT ANSWER : Yes AND No; if estate sale then no,
consignment sale then yes
Question 2: If an auctioneer sales a firearm away from their
business location, how do they transfer to buyer?
CORRECT ANSWER : It must be returned to their business
location before transferring.
Question 3: Who determines the auctioneers fee in federal
bankruptcy court?
CORRECT ANSWER : The court sets the fee.
Question 4: Who must obtain a firearms license?
CORRECT ANSWER : Persons in the business of importing,
manufacturing, or dealing in firearms, or importing or manufacturing ammunition
Question 5: What is an antique?
- | Page
CORRECT ANSWER : Any work of art, piece of furniture,
decorative object, or the like, created or produced in a former period, or, according to U.S. customs laws, 100 years before date of purchase.
Question 6: What is "provenance"?
CORRECT ANSWER : Place or source of origin; the history of
ownership.
Question 7: What does "termination" of a contract mean?
CORRECT ANSWER: when either party pursuant to a power
created by agreement or law puts an end to the contract otherwise than for its breach.
Question 8: What does "cancellation" of a contract mean?
CORRECT ANSWER : occurs when either party puts an end to
the contract for breach by the other and its effect is the same as that of "termination" except that the cancelling party also retains any remedy for breach of the whole contract or any unperformed balance.
- | Page
Question 9: True or False. An oral contract for a used jetski with
a price of $750 is enforceable in a court.
CORRECT ANSWER : False. For items more than $500 a
contract must be in writing to be enforceable.
Question 10: If a contract is found to have a deficiency like a
blank that was not filled in, is it rendered invalid?
CORRECT ANSWER : No. A writing is not insufficient because
it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in such writing.
Question 11: True or False. A contract is rendered invalid if it's
exact commencement is not noted.
CORRECT ANSWER : False. An agreement sufficient to
constitute a contract for sale may be found even though the moment of its making is undetermined.
Question 12: True or False. When a lot is sold with other lots
owned by the same seller, all lots are considered one "sale".
CORRECT ANSWER : False. Each lot is a different "sale".
- | Page
Question 13: When is the sale complete at auction?
CORRECT ANSWER : when the auctioneer so announces by
the fall of the hammer or in other customary manner.
Question 14: If a bid comes in while the hammer is falling, what
can happen next?
CORRECT ANSWER : The auctioneer can reopen the bidding
or he can declare the item sold for the bid under which the hammer was falling.
Question 15: True or False. All auctions are with reserve unless
otherwise stated.
CORRECT ANSWER : True.
Question 16: Can an auctioneer withdraw an item in a reserve
auction?
CORRECT ANSWER: Yes.
Question 17: Can an auctioneer withdraw an item in an absolute
auction?