Question # 1 (Multiple Choice) When two bidders claim the bid, the auctioneer

A) is required by law to start the bidding over
B) must choose one bidder and sell the item to that one
C) must re-open the bidding between those two bidders
D) may use his own discretion to handle the situation

Question # 2 (Multiple Choice) If a bid occurs while the hammer is falling

A) the auctioneer must accept the bid
B) the late bid is not a legal bid
C) the auctioneer may reopen the bid or declare the goods sold
D) it is not a timely bid, as the beginning of the fall of the hammer closes the bid

Question # 3 (Multiple Choice) If a lien or encumbrance on property is discovered prior to the auction, the auctioneer

A) must postpone the auction until clear title can be established
B) must cancel the auction
C) may attempt to sell the property "subject to" the lien
D) must sell the property and pay the creditor

Question # 4 (Multiple Choice) The Uniform Commercial Code includes rules for

A) general conditions of sales at auction
B) preparation and execution of contracts
C) warranties and titles
D) all of the above

Question # 5 (Multiple Choice) The term "as is" with regard to goods for sale at auction

A) means there is no guarantee
B) indicates that a guarantee is in effect
C) does not apply if the buyer had an opportunity to inspect the goods and refused to do so
D) may not legally be used at an auction

Question # 6 (Multiple Choice) A contract requiring performance by only one party is

A) a parol contract
B) an executory contract
C) a unilateral contract
D) a bilateral contract

Question # 7 (Multiple Choice) If goods are put up in lots at an auction

A) each lot is the subject of a separate sale
B) lots may not be sold in a group
C) the auctioneer is not allowed to sell "times the money"
D) each lot must be sold separately

Question # 8 (Multiple Choice) Buyers have the right to inspect goods at an auction

A) unless the goods have little value
B) under any and all circumstances
C) unless no disclaimers as to condition are made
D) unless title to the goods is of little concern

Question # 9 (Multiple Choice) An implied warranty may exist if the auctioneer

A) fails to announce that the goods are being sold "as is"
B) did not indicate goods will be sold "with all faults"
C) inadvertantly uses words to describe the goods that may be perceived as a guarantee
D) all of the above

Question # 10 (Multiple Choice) Notice of a sale to enforce a warehouseman's lien must be given

A) by advertising for 3 consecutive weeks
B) by sending brochures to people in like businesses
C) or the sale will be nullified
D) by certified mail 60 days prior to the sale to all persons who may claim an interest in the goods

Question # 11 (Multiple Choice) An auction with reserve

A) is assumed to be absolute unless advertised with reserve
B) is assumed to be with reserve unless advertised otherwise
C) may be legally advertised as absolute
D) may not contain any items to be sold absolute

Question # 12 (Multiple Choice) A general warranty may exist if

A) the seller does not have title to the goods
B) the goods are fit for their intended use
C) the condition of the goods is questionable
D) the seller has specified that the goods are sold as-is

Question # 13 (Multiple Choice) When goods are sold under UCC Article 7, Warehousemen's Liens

A) the warehouseman may satify his lien and expenses and keep the balance
B) amounts received in excess of the lien and expenses must be held for a specified time to allow the owner of the goods to make a claim
C) the warehouseman may not buy at the sale
D) the goods must be sold at public auction

Question # 14 (Multiple Choice) If the auction is conducted with a reserve or minimum bid

A) the highest bid received will be the winning bid
B) every item must be sold subject to confirmation
C) the property may be withdrawn at any time prior to completion of the sale
D) all items must be sold

Question # 15 (Multiple Choice) To be enforceable, a contract for the sale of goods must be in writing if the amount is

A) at least $500
B) over $500
C) more than $1,000
D) $50 or more

Question # 16 (Multiple Choice) Methods of payment which may result in delays in the passage of title to goods include all except

A) cash payment
B) extensions of credit
C) drafts for the transfer of funds
D) use of negotiable instruments to transfer funds

Question # 17 (Multiple Choice) If all items in a group of items are not like the item shown as representative of the group

A) the purchaser may request a refund
B) an auctioneer who misrepresented the goods may be held responsible for the refund amount
C) an express warranty by implication exists
D) all of the above

Question # 18 (Multiple Choice) The fact that the seller may bid on goods being sold

A) should be announced prior to the sale
B) if not disclosed, may cause the price to be set at the amount established by the last bona fide bid
C) may result in a bona fide bidder avoiding the sale
D) all of the above

Question # 19 (Multiple Choice) An auctioneer assigns lot numbers

A) because the Uniform Commercial Code requires it
B) so the buyers can identify items
C) to make auction record keeping more accurate
D) because it is a requirement in all states

Question # 20 (Multiple Choice) At an auction advertised as absolute

A) any property which receives a bid will be sold regardless of price
B) there are no reserves on any items in the sale
C) no minimum bids are required
D) all of the above

Question # 21 (Multiple Choice) The Uniform Commercial Code

A) includes requirements for auctioneers conducting bulk sales in all states
B) is exactly the same in all states
C) is state law which regulates commercial transactions
D) all of the above

Question # 22 (Multiple Choice) A contract stated in specific words, either orally or in writing, is an

A) express contract
B) implied contract
C) option contract
D) exclusive contract

Question # 23 (Multiple Choice) To be enforceable, a contract must include

A) an offer, acceptance, consideration
B) execution, option, witnesses
C) performance, agreement, delivery
D) agreement, option, acceptance

Question # 24 (Multiple Choice) At an auction with reserve

A) the auctioneer must sell the property to the highest bidder
B) the seller may not reject the final bid
C) the seller may accept or reject the highest bid
D) at least one bid must be accepted by the seller

Question # 25 (Multiple Choice) An executory contract is one which

A) requires no further performance
B) requires further performance
C) has all obligations completed
D) is unilateral in nature