NORTH CAROLINA AUCTIONEERS LAW - NCALB

1 NORTH CAROLINA AUCTIONEERS LAW. Chapter 85B of the General Statutes SECTION 85B-1. the purposes of this Chapter the following definitions shall apply: (1) Auction means the sale of goods or real estate by means of exchanges between an auctioneer and members of an audience, the exchanges consisting of a series of invitations for offers made by the auctioneer, offers by members of the audience, and the acceptance by the auctioneer of the highest or most favorable offer. (2) Auctioneer means any person who conducts or offers to conduct auctions and includes apprentice AUCTIONEERS except as stricter standards are specified by this Chapter for apprentice AUCTIONEERS . (3) Owner means the bona fide owner of the property being offered for sale; in the case of partnerships, owner means a general partner in a partnership that owns the property being offered for sale, provided that in the case of a limited partnership it has filed a certificate of limited partnership as required by Chapter 59 of the General Statutes; in the case of corporations, owner.

2 Means an officer or director or employee or someone acting on behalf of the employee of a corporation that owns the property being offered for sale provided that the corporation is registered to do business in the State. (4) Absolute Auction means the sale of real or personal property at auction in which the item offered for auction is sold to the highest bidder without reserve, without the requirement of any minimum bid, and without competing bids of any type by the owner, or agent of the owner, of the property. (5) Estate Sale means the liquidation by sale at auction of real or personal property of a specified person. (6) Auction Firm means a sole proprietorship of which the owner is not a licensed auctioneer, or any partnership, association, or corporation, not otherwise exempt from this Chapter, that sells either directly or through agents, real or personal property at auction, or that arranges, sponsors, manages, conducts or advertises auctions, or that in the regular course of business uses or allows the use of its facilities for auctions.

3 This definition applies whether or not an owner or officer of the business acts as an auctioneer. (7) Fund means Auctioneer Recovery Fund. (8) Auctioneering , conduct of auction , or conduct of business means, in addition to the actual calling of bids, any of the following: (a) Contracting for auction. (b) Accepting consignments of items for sale at auction. (c) Advertising an auction. (d) Offering items for sale at auction. (e) Accepting payment or disbursing monies for items sold at auction. (f) Otherwise soliciting, arranging, sponsoring, or managing an auction or holding oneself out as an auctioneer or auction firm. (9) Consignment means, unless otherwise modified by written agreement, the act of delivering or transferring goods or real estate in fact or constructively to an auctioneer or the auctioneer's agent in trust for the purpose of resale at auction whereby title does not pass to the buyer until there is an action indicating a sale.

4 For purposes of this section, consignment may also mean a bailment for sale. (10) Designated person means any person approved by the Board to have the authority to transact business for a licensed auction firm. 1. SECTION 85B-2. ACTIVITIES GOVERNED BY CHAPTER. (a) This Chapter shall apply to all auctions held in this State except the following: (1) Sales at auction conducted by the owner of all of the goods or real estate being offered, or an attorney representing the owner, unless the owner's regular course of business includes engaging in the sale of goods or real estate by means of auction, or unless the owner originally acquired the goods for the purposes of resale at auction;. (2) Sales at auction conducted by or under the direction of any public authority;. (3) Sales conducted by a receiver, trustee, guardian, administrator or executor or any similarly appointed person under order of any court or any person conducting a sale pursuant to an order of a United States Bankruptcy Court or the agent or attorney of such person, receiver, trustee, guardian, administrator or executor.

5 (4) Any sale required by law to be at auction;. (5) Sale of livestock at a public livestock market authorized and regulated by the Commissioner of Agriculture;. (6) Leaf tobacco sales conducted in accordance with the provisions of Chapter 106 of the General Statutes;. (7) Sale at auction of automobiles conducted under the provisions of 20-77, or sale at auction of motor vehicles by a motor vehicle dealer licensed under Article 12, Chapter 20 of the General Statutes;. (8) Sale at auction of a particular breed of livestock conducted by an auctioneer who specializes in the sale of that breed when such sale is conducted under the auspices of a livestock trade association, provided that the sale is regulated by the Packers and Stockyards Act and the auctioneer is required to be bonded by the United States Department of Agriculture.

6 (9) Sales conducted by and on behalf of any charitable or religious organization;. (9a) Sales conducted by and on behalf of a civic club, not exceeding one sale per year;. (10) Sales conducted by a trustee pursuant to a power of sale contained in a deed of trust on real property;. (11) Sales of collateral, sales conducted to enforce carriers' or warehousemen's liens, bulk sales, sales of goods by a presenting bank following dishonor of a documentary draft, resales of rightfully rejected goods, resales of goods by an aggrieved seller, or other resales conducted pursuant to authority in Articles 2, 4, 6, 7 and 9 of Chapter 25 of the General Statutes (the Uniform Commercial Code). (b) The exceptions provided in subdivisions (2), (4), (9), (9a) and (11) of subsection (a) of this section shall not apply to any person or entity engaged in the business of organizing, arranging, or conducting auction sales for compensation or any person who or entity that accepts consignments to be sold at auction where the consignor receives any proceeds from the sale.

7 (c) The exceptions provided in subdivision (7) of subsection (a) of this section shall not apply to any auctioneer licensed pursuant to this Chapter employed to be an auctioneer of motor vehicles for a licensed motor vehicle dealer, while conducting an auction for that dealer. SECTION 85B-3. AUCTIONEERS COMMISSION. (a) There shall be a five-member NORTH CAROLINA AUCTIONEERS Commission having the powers and responsibilities set out in this Chapter. The Governor shall appoint the members of the Commission, at least three of whom, and their successors, may be from nominations submitted by the AUCTIONEERS Association of NORTH CAROLINA . The AUCTIONEERS Association shall submit, within 45 days of when the vacancy occurs, at least three names for each position for which it is entitled to make a nomination.

8 Of the initial five members of the Commission one shall be appointed for a one year term, two shall be appointed for two-year terms and two for three-year terms; thereafter, each new member shall be appointed for a term of three years. Any vacancy shall be filled for the remainder of the unexpired term only. Each member shall continue in office until his successor is appointed and qualified. No member shall serve more than two complete consecutive terms. (b) At least three members of the Commission shall be experienced AUCTIONEERS who are licensed under this Chapter. One member shall be a person who shall represent the public at large and shall not be licensed under this Chapter. c) The Commission shall employ an executive director and other employees as needed to carry out the duties of this Chapter.

9 All employees shall serve at the pleasure of the Commission. 2. (d) Any action that may be taken by the Commission may be taken by vote of any three of its members. (e) The members of the Commission shall elect from among themselves a chairman to serve a one year term. No person shall serve more than two consecutive terms as chairman. (f) Repealed. (g) Members of the Commission shall receive the compensation set for members of occupational licensing boards by 93B-5. SECTION AUCTIONEERS COMMISSION; POWERS AND DUTIES. (a) The Commission shall have the following powers and duties: (1) To receive and act upon applications for licenses. (2) To issue licenses. (3) To deny, suspend, and revoke licenses pursuant to 85B-8. (4) To issue declaratory rulings. (5) To adopt rules for AUCTIONEERS and auctions that are consistent with the provisions of this Chapter and the General Statutes.

10 (b) The Commission may assess a civil penalty not in excess of two thousand dollars ($2,000) for acts prohibited in 85B-8. All civil penalties collected by the Commission shall be remitted to the school fund of the county in which the violation occurred. Before imposing and assessing a civil penalty and fixing the amount thereof, the Commission shall, as a part of its deliberations, take into consideration the following factors: (1) The nature, gravity, and persistence of the particular violation. (2) The appropriateness of the imposition of a civil penalty when considered alone or in combination with other punishment. (3) Whether the violation was willful. (4) Any other factors that would tend to mitigate or aggravate the violations found to exist. (c) The Commission shall have the power to acquire, hold, rent, encumber, alienate, and otherwise deal with real property in the same manner as a private person or corporation, subject only to approval of the Governor and the Council of State.