Pennsylvania Auctioneer Practice Exam

What does the term “consignor” refer to in the context of an auction?

1. A person who buys items

2. A person or entity that sells to other auctions

3. A person or entity that entrusts an auctioneer to sell their property

4. A person who organizes the auction event

The correct answer is: A person or entity that entrusts an auctioneer to sell their property

In the context of an auction, the term "consignor" specifically refers to a person or entity that entrusts an auctioneer with the responsibility of selling their property. This often involves items such as antiques, collectibles, or other assets that the consignor wants to sell through the auction process. By consigning their property, the consignor allows the auctioneer to represent their interests, showcasing their items to potential buyers and facilitating the sale. The role of the consignor is crucial because it establishes the relationship between the auctioneer and the seller. The auctioneer is responsible for marketing and selling the items on behalf of the consignor, and typically, the consignor receives a portion of the proceeds from the sale after auction fees are deducted. This concept is fundamental to the functioning of auctions, as it highlights the trust and agreement between the seller and the auctioneer when it comes to effectively selling property.