Are You a Designated Person Expert?

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Questions and Answers

According to Section .0606 of the North Carolina Auctioneer Licensing Board’s Administrative Regulations, what is the minimum number of Board approved designated persons that all licensed auction firms must have?

  • At least one (correct)
  • At least three
  • At least two
  • None

What activities can only be performed by the designated person(s) of an auction firm?

  • Supervision of the auction staff
  • Arranging, managing, soliciting, and contracting auctions
  • All of the above (correct)
  • Supervision of the acceptance of consignments of items for sale at auction

What happens to the status of an auction firm license if it does not have at least one designated person in good standing?

  • It remains valid
  • It is suspended
  • It is changed to inactive
  • It is changed to invalid (correct)

Can any licensed auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes (D)</p> Signup and view all the answers

Can an apprentice auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes (B)</p> Signup and view all the answers

Are individuals with a currently valid real estate broker license exempt from the auction firm examination?

<p>Yes, if their authority to transact business under the auction firm license is only related to real estate sales at auction (C)</p> Signup and view all the answers

Can an individually licensed auctioneer serve as the designated person for an auction firm without being directly involved in its day-to-day activities?

<p>No (B)</p> Signup and view all the answers

What can happen to the individual license of an auctioneer serving as a designated person if there is a problem with the auction firm?

<p>It can be suspended (C)</p> Signup and view all the answers

Are non-auctioneer designated persons exempt from the responsibilities of a designated person for an auction firm?

<p>No (B)</p> Signup and view all the answers

What is the best course of action for an individually licensed auctioneer serving as the designated person for an auction firm that they do not own or otherwise control?

<p>Be directly involved in the day-to-day activities of the auction firm (A)</p> Signup and view all the answers

Is it important for a designated person of an auction firm to have close supervision and ongoing contact with the auction firm?

<p>Yes (B)</p> Signup and view all the answers

Can an auction firm operate without a designated person in good standing?

<p>No (A)</p> Signup and view all the answers

According to Section .0606 of the North Carolina Auctioneer Licensing Board’s Administrative Regulations, what is the minimum number of Board approved designated persons that all licensed auction firms must have?

<p>At least one (B)</p> Signup and view all the answers

What activities can only be performed by the designated person(s) of an auction firm?

<p>All of the above (C)</p> Signup and view all the answers

What happens to the status of an auction firm license if it does not have at least one designated person in good standing?

<p>It is changed to invalid (C)</p> Signup and view all the answers

Can any licensed auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes (B)</p> Signup and view all the answers

Can an apprentice auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes (B)</p> Signup and view all the answers

Are individuals with a currently valid real estate broker license exempt from the auction firm examination?

<p>Yes, if their authority to transact business under the auction firm license is only related to real estate sales at auction (A)</p> Signup and view all the answers

Can an individually licensed auctioneer serve as the designated person for an auction firm without being directly involved in its day-to-day activities?

<p>No (C)</p> Signup and view all the answers

What can happen to the individual license of an auctioneer serving as a designated person if there is a problem with the auction firm?

<p>It can be suspended (A)</p> Signup and view all the answers

Are non-auctioneer designated persons exempt from the responsibilities of a designated person for an auction firm?

<p>No (D)</p> Signup and view all the answers

What is the best course of action for an individually licensed auctioneer serving as the designated person for an auction firm that they do not own or otherwise control?

<p>Be directly involved in the day-to-day activities of the auction firm (A)</p> Signup and view all the answers

Is it important for a designated person of an auction firm to have close supervision and ongoing contact with the auction firm?

<p>Yes (D)</p> Signup and view all the answers

Can an auction firm operate without a designated person in good standing?

<p>No (D)</p> Signup and view all the answers

According to Section .0606 of the North Carolina Auctioneer Licensing Board’s Administrative Regulations, how many Board approved designated persons must a licensed auction firm have?

<p>At least one (B)</p> Signup and view all the answers

What is the consequence if a licensed auction firm does not have at least one designated person in good standing?

<p>The auction firm license is revoked (D)</p> Signup and view all the answers

What activities can only be performed by the designated person(s) for an auction firm?

<p>All of the above (D)</p> Signup and view all the answers

What is the requirement for the designated person during an auction sale?

<p>They must be present on the premises (B)</p> Signup and view all the answers

Who can call bids for a licensed auction firm without being a designated person?

<p>Any auctioneer licensed under G.S. 85B (D)</p> Signup and view all the answers

Who can call bids for a licensed auction firm if they are an apprentice auctioneer?

<p>Only if they are supervised by the sponsor auctioneer (C)</p> Signup and view all the answers

Who is exempt from the auction firm examination if their authority to transact business under the auction firm license is only related to real estate sales at auction?

<p>Individuals with a valid real estate broker license (B)</p> Signup and view all the answers

What can happen to an individually licensed auctioneer if there is a problem with the auction firm in which they are serving as the designated person?

<p>Both their auctioneer license and the auction firm license can be impacted (C)</p> Signup and view all the answers

Can a non-auctioneer serve as a designated person for an auction firm?

<p>Yes, but there are no specific requirements (B)</p> Signup and view all the answers

What is the potential risk of an individually licensed auctioneer serving as a designated person for an auction firm that they do not own or otherwise control?

<p>It is a tricky situation and can result in negative consequences for both the auction firm and the auctioneer (B)</p> Signup and view all the answers

What is the responsibility of an individually licensed auctioneer who is serving as a designated person for an auction firm?

<p>They must be directly involved in the day-to-day activities of the auction firm (D)</p> Signup and view all the answers

What is the purpose of a Designated Person in an auction firm?

<p>To transact business under the firm license (A)</p> Signup and view all the answers

Who can call bids for a licensed auction firm without being a designated person?

<p>Any auctioneer licensed under G.S. 85B (C)</p> Signup and view all the answers

What is the consequence of a licensed auction firm not having at least one designated person in good standing?

<p>The auction firm license will be changed to invalid (D)</p> Signup and view all the answers

Who is exempt from the auction firm examination if their authority to transact business under the auction firm license is only related to real estate sales at auction?

<p>Real estate brokers (C)</p> Signup and view all the answers

What is the responsibility of a designated person during an auction sale?

<p>To be on the premises of the auction sale location (A)</p> Signup and view all the answers

Can a non-auctioneer designated person perform all the activities of a designated person for an auction firm?

<p>No (C)</p> Signup and view all the answers

What is the consequence of a problem with the auction firm for which an individually licensed auctioneer is serving as the designated person?

<p>The individual license of the auctioneer serving as the designated person will be suspended (A)</p> Signup and view all the answers

Can an individually licensed auctioneer serve as the designated person for an auction firm without being directly involved in its day-to-day activities?

<p>No (C)</p> Signup and view all the answers

What is the role of an apprentice auctioneer in calling bids for a licensed auction firm?

<p>They can call bids only if supervised by the sponsor auctioneer (B)</p> Signup and view all the answers

What is the best course of action for an individually licensed auctioneer serving as the designated person for an auction firm that they do not own or otherwise control?

<p>To be directly involved in the day-to-day activities of the auction firm (A)</p> Signup and view all the answers

Can an auction firm operate without a designated person?

<p>No (B)</p> Signup and view all the answers

Who has the authority to transact business under the firm license of a licensed auction firm?

<p>Only designated person(s) for an auction firm (A)</p> Signup and view all the answers

What is a designated person in the context of auction firms?

<p>An auctioneer who serves as the representative of an auction firm (A)</p> Signup and view all the answers

What is the consequence for a licensed auction firm that does not have at least one designated person in good standing?

<p>The auction firm's status will be changed to invalid (B)</p> Signup and view all the answers

What authority does a designated person have in an auction firm?

<p>The authority to transact business under the firm license (A)</p> Signup and view all the answers

Can any licensed auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes (D)</p> Signup and view all the answers

Are non-auctioneer designated persons exempt from the responsibilities of a designated person for an auction firm?

<p>No (D)</p> Signup and view all the answers

What is the role of an apprentice auctioneer in relation to an auction firm?

<p>To call bids for a licensed auction firm under the supervision of the sponsor auctioneer (D)</p> Signup and view all the answers

What is the exemption for individuals with a currently valid real estate broker license in relation to the auction firm examination?

<p>They are exempt from the exam if their authority to transact business under the auction firm license is only related to real estate sales at auction (A)</p> Signup and view all the answers

What is the consequence for an individually licensed auctioneer serving as a designated person if there is a problem with the auction firm?

<p>It can have an extremely negative impact on the individual license of that auctioneer (C)</p> Signup and view all the answers

Can an auction firm operate without a designated person in good standing?

<p>No (B)</p> Signup and view all the answers

What is the best course of action for an individually licensed auctioneer serving as the designated person for an auction firm that they do not own or otherwise control?

<p>To be directly involved in the day-to-day activities of the auction firm (D)</p> Signup and view all the answers

What is the role of an auctioneer who is not a designated person in an auction firm?

<p>To call bids for a licensed auction firm without being a designated person (C)</p> Signup and view all the answers

Why can serving as a designated person for an auction firm that an auctioneer does not own or control be a tricky situation?

<p>Because the auctioneer may not be directly involved in the day-to-day activities of the auction firm (C)</p> Signup and view all the answers

What is a designated person in the context of an auction firm?

<p>An auctioneer approved by the North Carolina Auctioneer Licensing Board to transact business under the auction firm license (B)</p> Signup and view all the answers

What happens to the status of an auction firm license if it does not have at least one designated person in good standing?

<p>It is changed to invalid (A)</p> Signup and view all the answers

Can any licensed auctioneer perform the responsibilities of a designated person for an auction firm?

<p>No, only designated person(s) have the authority to transact business under the firm license (C)</p> Signup and view all the answers

What are the specific responsibilities of a designated person for an auction firm?

<p>All of the above (B)</p> Signup and view all the answers

Can an apprentice auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes, as long as they are supervised by the sponsor auctioneer (B)</p> Signup and view all the answers

Are individuals with a currently valid real estate broker license exempt from the auction firm examination?

<p>Yes, if their authority to transact business under the auction firm license is only related to real estate sales at auction (B)</p> Signup and view all the answers

Can an auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes, as long as they are licensed under G.S. 85B (B)</p> Signup and view all the answers

What is the minimum number of Board approved designated persons that all licensed auction firms must have?

<p>One (D)</p> Signup and view all the answers

Is it important for a designated person of an auction firm to have close supervision and ongoing contact with the auction firm?

<p>Yes, to avoid major problems for the individual auctioneer and the auction firm (B)</p> Signup and view all the answers

Can an individually licensed auctioneer serve as the designated person for an auction firm without being directly involved in its day-to-day activities?

<p>No, because only the designated person can perform certain activities for the auction firm (A)</p> Signup and view all the answers

What can happen to the individual license of an auctioneer serving as a designated person if there is a problem with the auction firm?

<p>It is changed to invalid (D)</p> Signup and view all the answers

Are non-auctioneer designated persons exempt from the responsibilities of a designated person for an auction firm?

<p>No, they have the same responsibilities as auctioneer designated persons (B)</p> Signup and view all the answers

What is a designated person in the context of auction firms?

<p>An individual who is responsible for the day-to-day management and operation of an auction firm (B)</p> Signup and view all the answers

What happens to the status of an auction firm license if it does not have at least one designated person in good standing?

<p>The auction firm license will be changed to invalid (C)</p> Signup and view all the answers

Which of the following activities can only be performed by a designated person of an auction firm?

<p>Calling bids for the auction firm (C)</p> Signup and view all the answers

What is the role of an individually licensed auctioneer serving as a designated person for an auction firm?

<p>To be directly involved in the day-to-day activities of the auction firm (C)</p> Signup and view all the answers

Can any auctioneer licensed under G.S. 85B call bids for a licensed auction firm without being a designated person?

<p>Yes (D)</p> Signup and view all the answers

Can an apprentice auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes (D)</p> Signup and view all the answers

Are individuals with a currently valid real estate broker license exempt from the auction firm examination?

<p>They are exempt from certain parts of the examination (B)</p> Signup and view all the answers

Can an auction firm operate without a designated person in good standing?

<p>No, it is a requirement for all licensed auction firms (C)</p> Signup and view all the answers

Are non-auctioneer designated persons exempt from the responsibilities of a designated person for an auction firm?

<p>No, they have the same responsibilities as auctioneer designated persons (A)</p> Signup and view all the answers

What can happen to the individual license of an auctioneer serving as a designated person if there is a problem with the auction firm?

<p>The individual license may be suspended or revoked (C)</p> Signup and view all the answers

What is the best course of action for an individually licensed auctioneer serving as the designated person for an auction firm that they do not own or otherwise control?

<p>To be directly involved in the day-to-day activities of the auction firm (A)</p> Signup and view all the answers

What is a designated person in the context of an auction firm?

<p>An individually licensed auctioneer serving as the point of contact for an auction firm (B)</p> Signup and view all the answers

What happens if a licensed auction firm does not have at least one designated person in good standing?

<p>The auction firm license is changed to invalid (C)</p> Signup and view all the answers

Who has the authority to transact business under an auction firm license?

<p>Only designated person(s) for an auction firm (A)</p> Signup and view all the answers

What is the responsibility of a designated person in relation to an auction firm's auction sale location?

<p>To be on the premises while the auction sale is conducted (B)</p> Signup and view all the answers

Who is exempt from the auction firm examination if their authority to transact business under the auction firm license is only related to real estate sales at auction?

<p>Individuals with a currently valid real estate broker license (B)</p> Signup and view all the answers

Can any apprentice auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes (C)</p> Signup and view all the answers

Can any licensed auctioneer call bids for a licensed auction firm without being a designated person?

<p>Yes (B)</p> Signup and view all the answers

What is the best course of action for an individually licensed auctioneer serving as the designated person for an auction firm that they do not own or otherwise control?

<p>To be directly involved in the auction firm's day-to-day activities (D)</p> Signup and view all the answers

Are non-auctioneer designated persons exempt from the responsibilities of a designated person for an auction firm?

<p>No (D)</p> Signup and view all the answers

What can happen to the individual license of an auctioneer serving as a designated person if there is a problem with the auction firm?

<p>It can be revoked (B)</p> Signup and view all the answers

Can an auction firm operate without a designated person in good standing?

<p>No (B)</p> Signup and view all the answers

Is it important for a designated person of an auction firm to have close supervision and ongoing contact with the auction firm?

<p>Yes (A)</p> Signup and view all the answers

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Study Notes

Designated Persons in North Carolina Auction Firms

  • A minimum of one Board approved designated person is required for all licensed auction firms.
  • Only designated persons can perform specific activities such as overseeing auction sales and managing compliance with regulations.
  • An auction firm's license becomes inactive if it lacks at least one designated person in good standing.

Bidding Authority

  • Licensed auctioneers must be designated persons to call bids for licensed auction firms.
  • Apprentice auctioneers cannot call bids without being a designated person.

Exemptions and Qualifications

  • Individuals with a valid real estate broker license are exempt from taking the auction firm examination if their activities relate solely to real estate sales at auction.
  • An individually licensed auctioneer can serve as a designated person but must be directly involved in the firm's daily operations.

Accountability and Risks

  • If issues arise with the auction firm, the individual license of an auctioneer serving as a designated person may be affected.
  • Non-auctioneer designated persons are not exempt from the responsibilities required of a designated person.

Best Practices

  • An individually licensed auctioneer serving as a designated person for a firm they do not own should seek to maintain close supervision and regular contact with the firm.
  • It is vital for auction firms to have a designated person in good standing to operate effectively.

Responsibilities

  • The designated person is responsible for ensuring compliance with auction regulations and overseeing auction sale locations.
  • The designated person must be adequately involved with the firm’s operations to mitigate risks associated with problem occurrences.

General Operations

  • An auction firm cannot function without a designated person in good standing, stressing the importance of this role in maintaining operational integrity.

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