PENNSYLVANIA
AUCTIONEER PRACTICE
EXAM 140 QUESTIONS
Question 1: Under Pennsylvania law, which activity is included in the statutory
de�nition of an auction?
Choices:
1) A negotiated private sale with no bidding 2) An online sale that solicits competing bids to advance the price 3) A �xed-price retail sale 4) A private appraisal with no sale Correct Answer: An online sale that solicits competing bids to advance the price Explanation: Pennsylvania de�nes an auction broadly to include live, online, real-time, and extended formats in which o�ers are solicited as bids to obtain the highest or most favorable o�er. A negotiated transaction is excluded.Page 1
Question 2: A Pennsylvania seller hires an auction company to conduct an online
auction of personal property located in Pennsylvania. Which statement is correct?
Choices:
1) No Pennsylvania license is required because the server is outside the state 2) A Pennsylvania auction license may be required even if the server is outside Pennsylvania 3) Only the buyer must be licensed 4) Online auctions are outside the Auctioneer Licensing Act Correct Answer: A Pennsylvania auction license may be required even if the server is outside Pennsylvania Explanation: Pennsylvania's licensing requirement can apply to online auctions involving a Pennsylvania seller or property located in Pennsylvania regardless of where the computer server is located.Question 3: Which sale is speci�cally exempt from Pennsylvania auctioneer licensure requirements?
Choices:
1) A compensated charity auctioneer hired by a nonpro�t 2) An owner's one speci�ed sale in a year when the owner is not in the business of selling that property 3) A weekly consignment auction conducted by the owner 4) A commercial liquidation conducted for a fee Correct Answer: An owner's one speci�ed sale in a year when the owner is not in the business of selling that property Explanation: The Act exempts a speci�ed single sale per year conducted by the owner when the owner is not engaged in the business of selling the property.Page 2
Question 4: A volunteer conducts an auction for a charitable organization and
receives no compensation. Under Pennsylvania law, this sale is generally:
Choices:
1) Exempt from auctioneer licensure requirements 2) Permitted only if fewer than 25 lots are sold 3) Permitted only with a special auction license 4) Illegal unless a licensed auction company is present
Correct Answer: Exempt from auctioneer licensure requirements
Explanation: A sale conducted by or on behalf of a charitable organization is exempt when the person conducting the sale receives no compensation.Question 5: Which estate sale may fall within a Pennsylvania statutory exemption from auctioneer licensure?
Choices:
1) A sale conducted by a paid outside auctioneer 2) A sale conducted by the executor or administrator in settling a decedent's estate 3) Any estate sale held online 4) Any sale involving inherited property Correct Answer: A sale conducted by the executor or administrator in settling a decedent's estate Explanation: The Act exempts a sale conducted in settlement of a decedent's estate when conducted by the executor or administrator.Page 3