Exceptions to Mississippi Law Requiring Auctioneer License

Under Mississippi Auction Laws, Mississippi Code Section 73-4-5 sets forth exceptions to the requirement that an auctioneer have an active auctioneer license.

These exceptions include the following:

1. A sale conducted by order of any United States court pursuant to Title 11 of the United States Code relating to bankruptcy;
2. A sale conducted by an employee of the United States or the State of Mississippi or its political subdivisions in the course and scope of his employment;
3. A sale conducted by a charitable or nonprofit organization if the auctioneer receives no compensation;
4. A sale conducted by an individual of his own property if such individual is not engaged in the business of such property as an auctioneer on a recurring basis;
5. A sale conducted by an individual acting as a receiver, trustee in bankruptcy, guardian, administrator or executor or any such person acting under order of court; by a real estate agent, broker or salesman, who auctions property that he has an exclusive listing agreement on, if done through a silent or written auction not done by public outcry or by a trustee acting under a trust agreement, deed of trust or will;
6. A foreclosure sale of personal property conducted personally by the mortgagee or other secured party or an employee or agent of such mortgagee or other secured party acting in the course and scope of his employment if the employee or agent is not engaged otherwise in the auction business and if all property for sale in the auction is subject to a security agreement;
7. A sale conducted by sealed bid;
8. An auction conducted in a course of study, approved by the Secretary of State, for auctioneers and conducted only for student training purposes;
9. An auction conducted by a posted stockyard or market agency as defined by the Federal Packers and Stockyard Act, 1921, as amended (7U.S.C.S. 181 et seq.);
10. An auction of livestock conducted by a nonprofit livestock trade association chartered in this state if the auction involved only the sale of the trade association’s members’ livestock; or
11. An auction conducted by a charitable or nonprofit organization chartered in this state if the auction involves only the property of the organization’s members and the auction is part of a fair that is organized under state, county, or municipal authority.

Although the reasoning behind some of these exceptions is subject to debate, most interesting to this author are numbers 1, 2, 3 and 6.  

Under number 1, the law assumes there is no value in having a licensed auctioneer sell property in bankruptcy.  Although many Trustees do employ auctioneers to conduct a bankruptcy estate auction, they are apparently not required to do so.  

Number 2 assumes there is no need for a licensed auctioneer if the "auctioneer" is an employee of the United States or State of Mississippi acting in the scope of his employment.  This exception makes sense for things like tax sales, but are there many other situations where it does not?  

Number 3 allows any person to conduct an auction for a charitable or nonprofit organization if the auctioneer receives no compensation without more.  This exception appears too broad.  

Number 6 is not clear.  Does it mean that the persons listed in this can only conduct a sealed bid auction, or does it mean a real estate agent with a listing can conduct a sealed bid auction, but a receiver, trustee in bankruptcy, guardian, administrator and executor or other person acting under court order can conduct an auction without a license?

If the requirement of having an auctioneers license has a rational basis, one would have to believe that some of these exceptions are harmful to the owner or seller of the items being sold since an inexperienced, unlicensed person is allowed to conduct the sale.

Note:  Check actual laws for most recent version

.