What is a requirement in an agency relationship concerning compensation?

In an agency relationship, particularly in the context of auctioneering, being a legally licensed auctioneer is essential because it establishes the authority and legality of the auctioneer's actions. Licensing ensures that the individual has met the necessary educational and professional requirements set by state regulations, which include understanding the laws governing auctions and ethical standards. This legal framework protects both the auctioneer and the clients they represent.

While having an assistant auctioneer, a degree in business, or prior auction experience can be beneficial, they are not requirements under the agency relationship concerning compensation. The key aspect revolves around the auctioneer's legal ability to operate within their professional capacity, which is granted through licensing. This signifies that only those who have complied with the regulatory requirements can engage in auctions and negotiate compensation appropriately within an agency framework.