LA 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.
- Louisiana auctioneer license requirement
- A person must hold a valid Louisiana auctioneer license, issued through the state licensing board, before conducting or advertising an auction in the state.
- Apprentice auctioneer
- An individual who works under the sponsorship of a licensed Louisiana auctioneer while completing education and experience requirements toward full licensure.
- Grounds for license discipline
- Fraud, misrepresentation, commingling trust funds, unlicensed practice, and false application statements are typical grounds for board sanctions.
- License display and reporting
- Licensees must keep a current business address on file, report changes, and provide license information to the board or the public on request.
- Consignment agreement terms
- The written contract between seller and auctioneer stating commission, expenses, reserve status, withdrawal rights, settlement timing, and risk of loss.
- Fiduciary duty of accounting
- The auctioneer must account for all money and property received for the seller and may not use trust funds for personal or operating purposes.
- Reserve versus absolute auction
- In a reserve auction the seller may reject bids below a stated minimum; in an absolute auction the highest bid must be accepted regardless of price.
- Undisclosed seller bidding
- Bidding by or for the seller without disclosed reservation of that right is fraudulent shill bidding and can allow the buyer to avoid the sale.
- Hammer fall completes sale
- An auction sale is complete when the auctioneer announces completion by fall of the hammer or another customary manner; the high bid forms the contract.
- Bid withdrawal before acceptance
- A bidder may retract a bid until the auctioneer announces completion of the sale, and retraction does not revive any earlier bid.
- Withdrawal with reserve
- In an auction with reserve, goods may be withdrawn at any time before completion of the sale, even after bids have been made.
- Absentee bid handling
- Left, phone, and online bids must be executed fairly and documented; the auctioneer may not manipulate bidding to raise the price artificially.
- Trust account separation
- Seller and buyer funds must be held in a dedicated trust or escrow account and not commingled with the auctioneer's operating funds.
- Settlement statement contents
- A statement showing gross proceeds, buyer's premium, commission, expenses, lien payoffs, and the net amount remitted to the seller.
- Sales tax trust character
- Sales tax collected at auction is held for the state, must be remitted on schedule, and cannot be spent as operating money.
- Trust account reconciliation
- At all times the trust account balance should equal the sum of seller and buyer funds on hand; shortages must be investigated and documented.
- UCC auction completion rule
- Under the Uniform Commercial Code, a sale by auction is complete when the auctioneer announces completion, and a bid is revocable until then.
- UCC no-reserve withdrawal limit
- In a no-reserve auction, goods may not be withdrawn after a bid is made unless no bid is made within a reasonable time.
- Consignee bailee duty
- An auctioneer holding consigned goods as bailee must exercise reasonable care, insure the goods, and account for sale proceeds.
- Consignment perfection issue
- A true consignment may be treated as a security interest under UCC Article 9; consignors should perfect and notify to protect priority.
- Authentic act requirement
- Louisiana transfers of immovable property generally require an authentic act before a notary and two witnesses, or a written act under private signature.
- Title commitment disclosure
- The auctioneer should disclose known liens, servitudes, and title defects and state whether the sale is subject to them or free and clear.
- Tax sale redemption
- Buyers at Louisiana tax sales take subject to statutory redemption periods and must be advised of the risk before bidding.
- Real property earnest money
- Deposits on real property auctions should be held in trust or escrow and applied to the price or returned according to the contract terms.
- Absolute label restriction
- Advertising an auction as absolute when a reserve exists is a misrepresentation subject to licensing discipline and consumer protection claims.
- Louisiana unfair trade practices
- The Louisiana Unfair Trade Practices and Consumer Protection Law prohibits deceptive acts in trade and allows private remedies and attorney fees.
- Material fact disclosure
- Condition, provenance, repairs, and encumbrances are material facts that must be disclosed; disclaimers cannot cure affirmative misrepresentations.
- Conflict of interest rule
- An auctioneer should not buy consigned goods or accept undisclosed compensation from buyers or sellers without full written disclosure.
- Auction sales tax duty
- Auctioneers must collect and remit Louisiana state and local sales tax on taxable sales of tangible personal property unless an exemption applies.
- Bailee insurance coverage
- Auctioneers should carry general liability and bailee or consignment coverage for goods in custody and keep certificates of insurance.
- Worker classification risk
- Staff and ring persons classified as independent contractors rather than employees can create payroll tax and liability exposure if misclassified.
- Record retention for audits
- Tax filings, payroll records, trust account records, and sale documents should be retained per state and federal rules and available for audit.