Arkansas Auction Law

Arkansas’ name came from the Quapaw Indians, whom the French called the “Arkansaw.” Arkansas is nicknamed the Natural State because of its beautiful lakes, rivers, mountains, and wildlife. This state is not a beginner for auctions, let’s take a look at their auction laws in this article.

Auctioneer’s Licensing Board

They created the Auctioneer’s Licensing Board. The Governor shall appoint a board consisting of seven members, four of whom are licensed auctioneers and three from the public at large, each of whom immediately prior to the date of his or her appointment has been a resident of the State of Arkansas for five years.  

 The Auctioneer’s Licensing Board shall annually publish a list of the names and addresses of all auctioneers licensed by it pursuant to this law. This list shall contain the names of all persons whose licenses have been suspended or revoked within the preceding year as well as any other information relative to the enforcement of the provisions of this chapter that the board may deem of interest to the public.  

Licensing

Auctioneer licenses shall be granted only to persons who are found to be of good reputation, trustworthy, and competent to transact the business of an auctioneer, in such a manner as to safeguard the interest of the public. The Auctioneer’s Licensing Board is authorized to require information from every applicant to determine the applicant’s honesty and truthfulness.  

In addition to proof of honesty, truthfulness, and good reputation, an examination conducted by the board or its authorized representatives shall be held four times each year, and an examination fee of one hundred dollars ($100) shall be collected from each applicant to defray the expenses of the examination. 

The examination shall include questions on ethics, reading, writing, spelling, elementary arithmetic, and a general knowledge of the laws of Arkansas and the Arkansas Code, including, but not limited to, contracts of sale, agency, leases, auctions brokerage, and the provisions of the Uniform Commercial Code

Renewal and Change of Address

An examination shall not be required for the renewal of any present or future license unless the license has been revoked. In this case, the applicant shall take and pass 28 the written examination offered by the Auctioneer’s Licensing Board before a new license may be issued. Licensed auctioneers have a one-hundred-twenty-day grace period beyond a renewal date to renew a license.  Penalty for late renewals beyond the one-hundred-twenty-day grace period shall be two times the sum of a normal license renewal fee. 

The annual renewal fee for each license shall be one hundred dollars ($100). The annual renewal fee for each license shall be one hundred dollars ($100). In the absence of a reason or condition that might warrant the refusal of the renewal of the license and upon receipt of the written request of the applicant and the applicant’s annual fee, the board shall issue a new license each ensuing year. 

Notice in writing shall be given to the board by each licensee of any change of business location within thirty (30) days after any change in location, and at that time the board shall issue a new license for the unexpired period. A change of business location shall automatically cancel the license previously issued. Changing a business location and issuance of a new license shall entitle the board to collect five dollars ($5.00).  

Each first-time applicant for a license issued by the Auctioneer’s Licensing Board and each applicant seeking reinstatement of an expired license from the board shall be required to apply to the Identification Bureau of the Department of Arkansas State Police for a state and national criminal background check to be conducted by the Federal Bureau of Investigation. 

Non-resident Licensing

A nonresident of this state may become a licensed auctioneer in this state by registering with the Auctioneer’s Licensing Board and confirming in writing that his or her actions will be regulated by this chapter and other applicable laws of this state. In every instance the nonresident must pay the issuance fee, the annual renewal fee, and the Auctioneer Education and Recovery Fund fee. 

No person who is not a resident of this state shall conduct any livestock auction in this state unless bonded for at least fifty thousand dollars ($50,000) by a surety licensed to do business in this state by the Insurance Commissioner.  A violation of this section shall constitute a Class A misdemeanor.

Suspension or Revocation of License

The Auctioneer’s Licensing Board may impose a civil penalty or suspend or revoke the license of an auctioneer for any of the following causes:

  • Obtaining a license through false or fraudulent representation.
  • Pursuing a continued and flagrant course of misrepresentation or making false promises through agents or advertising or otherwise.
  • Failing to account for or remit within a reasonable time any money belonging to others that comes into his or her possession.
  • Commingling funds of others with his or her own or failing to keep the funds of others in an escrow or trustee account
  • Paying valuable consideration to any person for services performed in violation of this law.
  •  Being convicted of a criminal offense involving moral turpitude or a felony in a court of competent jurisdiction of this or any other jurisdiction.
  • Willfully violating a rule or regulation promulgated by the board.
  • Failing to enter into a written contract with the seller and to furnish voluntarily to the seller at the time of execution copies of all written instruments prepared by the auctioneer, including the contract.
  • Any conduct of an auctioneer that demonstrates bad faith, dishonesty, incompetency, untruthfulness, or deceptive practices.
  • Any other conduct that constitutes improper, fraudulent, or dishonest dealings, including falsely accusing any auctioneer or auction house.
  • Failing to complete or submit the continuing education requirements as specified by this chapter and the rules and regulations adopted by the board.
  • Failing to disclose the buyer’s premium in all advertising associated with an auction. 

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Each and every advertisement by an auctioneer or consignment auction house shall include the number of the license issued to the auctioneer or auction company by the Auctioneer’s Licensing Board.

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