14 Questions
Which of the following is the definition of a buyer's premium in auctions?
The advertised percentage of the high bid or flat fee added on to the high bid to determine the total price to be paid by the buyer
What is the purpose of a reserve auction?
To guarantee that the seller will receive at least a certain amount of money
What is the difference between a reserve auction and an absolute auction?
In a reserve auction, the seller may disclose the reserve amount to bidders, while in an absolute auction, the property is sold to the highest bidder without any reserve price
What is the settlement statement that the auctioneer must provide to the seller or consignor?
A description of all goods sold
What is an auctioneer's fiduciary duty to the seller?
To act in the best interest of the seller
What is required of auctioneers in terms of creating and retaining records?
Auctioneers are required to create and retain both consignment and sales records
What is the purpose of this brochure created by the NC Auctioneer Licensing Board?
To provide consumer information regarding auctioneering in North Carolina
What is a buyer's premium in auctions?
A fee added on to the high bid to determine the total price to be paid by the buyer
What is a reserve auction?
An auction where a price has been set between the seller and auctioneer that must be met to complete the sale
What is an absolute auction?
An auction where the property is sold to the highest bidder without a minimum or reserve price that must be met to complete the sale
What is the auctioneer's fiduciary duty to the seller?
To act in the best interest of the seller while engaging legally, ethically, and in good faith with all parties
What is required of auctioneers in terms of creating and retaining records?
Auctioneers are required to create and retain consignment records and sales records
What is the purpose of the settlement statement that the auctioneer must provide to the seller or consignor?
To include a description of all goods sold, the selling price of the goods sold, the net proceeds due to the seller or consignor, the name and address of the person receiving the disbursement, and the amount of the disbursement
What is the purpose of the brochure created by the NC Auctioneer Licensing Board?
To provide a general guide for consumer information regarding auctioneering in North Carolina
"Test Your Knowledge of Buyer's Premium in Auctions: How Much Do You Know?" Take this quiz to learn more about buyer's premium and its role in auctions. From the definition and calculation of buyer's premium to its benefits and drawbacks, this quiz covers it all. Sharpen your understanding of this payment form and impress your peers with your expertise in auctions.
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