KY Auctioneer flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Fall of the hammer
- The customary announcement that completes an auction sale; before this point a bidder may retract a bid, and after it the contract of sale is formed.
- Reserve price
- A confidential minimum price agreed in writing between seller and auctioneer; the auctioneer may not accept a bid below it and may withdraw the lot if it is not met.
- Sale without reserve
- An auction in which the goods must be sold to the highest bidder; the seller and auctioneer may not bid or procure bidding on the seller's behalf.
- Shill bidding
- Bidding by or on behalf of the seller, or by persons colluding with the seller, to inflate the price; it is prohibited and may violate auction statutes and antitrust law.
- Buyer's premium
- A percentage charge added to the hammer price and paid by the buyer; it forms part of the total purchase price and is typically subject to sales tax.
- Conditions of sale
- The published terms that govern an auction, including premium, payment deadlines, risk of loss, and remedies; bidders accept them by registering and bidding.
- Absentee bid
- A written maximum bid submitted before the sale and executed by the auctioneer as agent for the bidder; execution errors are generally not the auction house's liability absent negligence.
- Risk of loss
- The allocation of responsibility for damage or theft of purchased property; it commonly passes to the buyer on the fall of the hammer even if title passes later.
- Consignment agreement
- The written contract between consignor and auction house setting commission, reserve, fees, insurance, withdrawal terms, and the settlement timeline for sold lots.
- Consignor warranty of title
- The seller's representation that it owns the property and has authority to sell it, and that no liens or claims encumber the goods.
- Withdrawal fee
- A charge imposed on a consignor who removes a lot from sale after listing; the amount and conditions should be stated in the consignment agreement.
- Settlement statement
- A written accounting to the consignor showing hammer price, buyer's premium, commission, expenses, and the net amount remitted after the buyer's payment clears.
- Trust account
- A separate account holding buyer funds belonging to consignors; commingling with operating funds is prohibited and shortages may result in license discipline.
- Commingling
- Mixing client trust funds with the auction house's own funds; it is prohibited even briefly and regardless of whether consignors are ultimately paid.
- Bidder registration record
- Documentation of a bidder's identity, contact details, and capacity as principal or agent; it supports collection, dispute resolution, and compliance review.
- Kentucky Board of Auctioneers
- The state board established under KRS Chapter 330 that licenses auctioneers and auction houses, sets examination and education requirements, and imposes discipline.
- License renewal and continuing education
- Licensees must complete required continuing education hours before the renewal deadline; failure places the license in lapsed status and bars auctioneering for compensation.
- Auction house license
- A separate license required for the business entity and each location that conducts auctions, distinct from the individual auctioneer license.
- Unlicensed auctioneering
- Conducting auctions for compensation without a valid license; it exposes the actor to civil penalties and may render the auction services contract unenforceable.
- Agency relationship
- The fiduciary relationship in which the auctioneer acts for the seller; it creates duties of loyalty and disclosure independent of contractual liability limits.
- Attribution language
- Graded terms such as "by," "attributed to," "circle of," and "after" that signal the strength of an authorship claim and must be used consistently.
- Condition report
- A specific written description of defects, restorations, and losses, stating the basis and limits of inspection; material known defects must be disclosed.
- Provenance gap
- A break in the documented ownership history of an object; it is material to value and should be disclosed rather than left for the buyer to discover.
- Third-party grading
- Certification of coins, stamps, or similar property by an independent grading service; the auction house should identify the grader and disclaim its opinion.
- Regulated property transfers
- Firearms, alcohol, and similar categories require compliance with federal and state transfer rules, including background checks and dealer licensing, before delivery.
- Conflict of interest
- A personal or financial interest of the auctioneer in the property or the outcome; it must be disclosed in the listing and announced in the saleroom.
- Dual compensation
- Receiving payment from both buyer and seller in the same transaction; it requires full written disclosure and consent from both parties to be ethical.
- Statement of opinion
- An expression about value, age, or attribution rather than a fact; opinion language must be deliberate and distinguished from factual representations in listings.
- Confidential reserve
- The minimum price known to the seller and auctioneer but not disclosed to bidders; sharing it with bidders breaches the duty of confidentiality.
- Bidding increment
- The step between successive bids set by the auctioneer; increments should be applied consistently so that no bidder receives favored treatment.
- Reopening bidding
- The auctioneer's discretionary act of resuming bidding when a bid is made while the hammer is falling, before the sale is finally completed.
- Late payment remedies
- Interest, storage charges, cancellation, and resale-difference liability that the conditions of sale may impose on a buyer who fails to settle on time.