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Live & Online Auction Procedures Flashcards

7 cards from real CFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Live & Online Auction Procedures flashcards as text

  1. When a firearm lot fails to meet its reserve price at a live auction, what is the standard procedure?

    Answer: The lot is passed and may be relisted or sold privately

    A lot that does not meet its reserve price is 'passed' and the consignor may relist it, negotiate privately, or withdraw it.

  2. In online firearm auctions, what document must the winning bidder typically provide to the FFL transfer dealer before the gun is shipped?

    Answer: A copy of a valid government-issued photo ID

    The FFL dealer receiving the firearm usually requires a copy of a government-issued photo ID to initiate the transfer paperwork.

  3. What is the term for the incremental amount by which bids must increase during an auction?

    Answer: Bid increment

    A bid increment is the minimum amount a new bid must exceed the previous bid, set by the auction house.

  4. An appraiser notices a consigned rifle has a mismatched serial number on the bolt. What is the MOST appropriate action before the auction?

    Answer: Flag it for legal review and notify the auction house immediately

    A mismatched serial number may indicate an illegal alteration or theft; the appraiser must flag it for legal review before the lot proceeds.

  5. What is 'absentee bidding' in the context of a live firearm auction?

    Answer: A bid submitted in advance authorizing the auctioneer to bid up to a set maximum on the bidder's behalf

    Absentee bids are left-bid instructions that allow the auctioneer to execute bids up to a maximum amount for buyers who cannot attend in person.

  6. Which of the following fees is paid by the BUYER at most firearm auctions?

    Answer: Buyer's premium

    The buyer's premium is an additional percentage of the hammer price charged to the winning bidder by the auction house.

  7. During a live auction, a telephone bidder drops the call mid-lot. What typically happens?

    Answer: The lot continues and the last confirmed bid from that bidder stands

    Standard auction practice treats the last confirmed bid as the telephone bidder's standing offer; the lot continues normally.