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In-Lane and Online EFFECTIVE DATE: August 1, 2019

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In-Lane and Online EFFECTIVE DATE: August 1, 2019 ARBITRATION POLICY In-Lane and Online EFFECTIVE DATE: August 1, 2019 As adopted from the National Auto Auction Association's recommended national arbitration policies Standards Arbitration Policy Effective Date: August 1,2019 I. General Policies: 1. Fair and Ethical Sale 3. Auction VIN Policies The sales made at an Auction are intended to All vehicles consigned must have a visible promote fair and ethical treatment to both public Vehicle Identification Number (VIN) the Buyer and Seller. If Auction determines plate attached to the vehicle by the that the transaction is not fair and ethical to manufacturer or state inspector (state either party, the Seller and the Buyer agree reassigned VIN only). Those vehicles having that Auction may cancel the sale, at its sole a reassigned VIN plate by the State in place discretion. Federal, State, and Local laws of the original VIN plate must be announced supersede these policies where applicable. or will be subject to sale cancellation or Buyer return. Auction reserves the right to refuse the sale of any vehicle in which the 2. Auction Role in Sale: VIN plate appears to be altered in any way. Seller guarantees VIN plates and years on a. Auction makes no representations or any vehicle up to 20 model years old with guarantees on any vehicle sold or offered the exception of the VIN plates and year on for sale. trailers, RVs, , and watercraft, which are guaranteed up to 10 model years. b. Auction is not a party to the contract of the sale. The sales contract is between the Seller and Buyer only. 4. Lot Sales / Outside Sales / Off Block Sales c. All vehicles bought or sold on the Any sale in which the Auctioneer does not premises must be processed through the state the selling price of the vehicle or "sell Auction office. Failure to do so will result in suspension of trading privileges at under the hammer" is considered a "Lot Auction. Sale" (OFF BLOCK) AS IS SALE. All "Lot Sales" (OFF BLOCK) are conditional d. Auction reserves the right to review any until the buyer signs the block ticket or audio/video documentation to verify the accuracy of a sale. appropriate document for the vehicle signifying they have inspected and accepted e. Any vehicle consigned with the Auction is the vehicle. Until the appropriate document subject to government inspection, with or is signed, the sale is not binding to either without prior notice, by the FBI, State party. Police, National Auto Theft Bureau, Local Police Authorities, any other Seller may guarantee "Lot Sales" (OFF governmental agency, or quasi- BLOCK), but must do so in writing governmental agency. OTHERWISE IT IS CONSIDERED AS IS SALE. Buyers are cautioned to inspect "Lot Sale" (OFF BLOCK) vehicles very carefully and verify conditions before purchasing. Standards Page 1 of 14 Arbitration Policy Effective Date: August 1,2019 II. Sale Light System: 3. Red Light – As-Is: Vehicles selling under the red light will only qualify for arbitration under the rules outlined in this policy. (As- Auction has a standard light/video display Is dollar amount, model years, and mileage system to describe the condition and/or are subject to local auction policy). disclosures related to the vehicle being sold. The system is defined as: 4. Blue Light Title Attached/Title Unavailable/Title Absent: This light is 1. Green Light –Ride and Drive: The green used to announce that the title is not light signals that this vehicle is guaranteed present (auction managed location) at the under the conditions outlined in this policy time of the sale. For Auction rules regarding by the seller. Any defects or issues requiring titles please refer to the Title Arbitration disclosure per this policy should be Policy section. If “title announced using the green and yellow lights. attached/unavailable/absent” is not announced, a vehicle could be arbitrated for 2. Red Light – Drivetrain: This light is an no title in the absence of auction company indication to the Buyer that the Auctioneer policy. or Selling Representative has made announcements that qualify/clarify the condition limiting arbitration of this vehicle to drive line components only. Engine, transmission, rear-end, 4X4 system and hybrid vehicle batteries can be arbitrated per auction arbitration policy. Announcement /Light Legend Light Usage Recommendation Announcements: Green Red Red Ride & Drive Only P N/A N/A Red Light - Drivetrain N/A P N/A Red Light - As-is, No Arbitration N/A N/A P All Vehicles Sold For $1500 or Less Are Automatic Red Light AS-IS No Matter What Light or Annoucement(s)are made Standards Page 2 of 14 Arbitration Policy Effective Date: August 1,2019 III. Seller Responsibilities: 1. Seller will be held responsible for the 6. The announcement of the presence of accuracy and completeness of all warning lights does not exempt a Seller representations or descriptions. This from arbitration responsibilities as defined includes handouts, catalogues, vehicle by the policy. The issue/defect found to be markings, condition information or vehicle the cause of the light may be arbitrated listings and verbal or written statements within the stated time period and dollar made by Seller, Auction, Auctioneer or amount threshold according to Appendix 1. Selling Representative at the time of sale. This includes the condition report written by 7. The availability of a manufacturer’s or on behalf of the seller as per the “NAAA warranty shall not affect a Buyer’s right to Generic Condition Report Position arbitrate a vehicle. Regardless of the Statement”. The Seller understands that warranty coverage in terms of the root the sale light/video display is a binding cause of the complaint, an announcement arbitration representation of vehicle may be required. condition, and is therefore responsible for ensuring that their vehicles sell under the 8. In the event of a successful arbitration by correct light in the lane. the Buyer, the Seller is responsible for reimbursement of all reasonable 2. Mileage announcements are not required for documented expenses incurred by the vehicles that are 10 years or older and/or Buyer (excluding profit, commissions and deemed exempt from Odometer and Title detail charges) on vehicles arbitrated for disclosure laws unless a mileage undisclosed conditions. Reimbursements discrepancy is known or apparent to the that qualify under these guidelines will be at seller. The Seller may represent miles on the sole discretion of the Auction and will be exempt vehicles; any disclosures made by limited to the reasonable and documented the Seller and all known odometer expenses at auction (wholesale) repair cost. discrepancies are grounds for arbitration. 9. Seller will not be paid for vehicles in 3. Title discrepancies must be announced arbitration until arbitration is settled and including, but not limited to: not actual vehicles are sold. For arbitrations occurring miles, salvage, theft recovery, stolen after the seller has been paid, seller is vehicle, flood damage, Lemon Law buybacks required to promptly return the payment to and trade assist. the auction if the transaction is voided as a result of arbitration. 4. If a vehicle is being offered for sale by a third party, an announcement of “3rd Party Seller” is required. Disclosure requirements and time limits are subject to local auction policy. 5. Announcements are required for any matters that relate to the safety or integrity of the vehicle including as per the stated dollar threshold and disclosure requirements stated in this policy, all requirements under local, state or federal statutes or regulations. Announcements must be made both verbally and disclosed on the auction invoice/sale contract/bill of sale or equivalent document in a physical or online auction environment. Standards Page 3 of 14 Arbitration Policy Effective Date: August 1,2019 IV. Buyer Responsibilities: 6. The Buyer shall not surrender possession of the vehicle to any claimant, except as 1. Prior to placing bids, the Buyer is responsible required by legal process, nor shall Buyer for inspecting the vehicle, listening to and voluntarily pay or acknowledge the validity reviewing any verbal or written announcements of any claim, without the prior approval of and disclosures made by the Seller, Auction, Auction. Time is of the essence. Any failure Auctioneer or Selling representative. Buyers are on the part of the Buyer, after becoming also responsible for reviewing all pertinent aware of said claim, to notify Auction of any information available online, including, but not claim in a timely manner or failure of the limited to, announcements, disclosures, Buyer to cooperate in defending any such condition reports, pictures and online listings. claim shall relieve Auction and seller of any Buyers are also responsible for observing and liability under this policy. understanding the sale lights (Green, Green/Yellow, Yellow, Red, and/or Blue), which 7. A vehicle is not considered returned until identify various sale conditions for the vehicle. received, inspected and approved for return Once the vehicle is sold, the Buyer must review by Auction management. Any vehicle the Auction sales receipt or appropriate returned must be in the same or better document to confirm the vehicle price, condition as when sold. Any vehicles disclosures and announcements are correct delivered to and left on Auction premises before legibly printing and signing their name or without Auction approval remain the sole digitally/electronically signing the Auction sales responsibility of the Buyer. Buyer assumes receipt or appropriate document. all risk of loss. Vehicle must be returned in a timely manner consistent with Auction 2. It is strongly encouraged that a Buyer should direction. have a Post Sale Inspection (PSI), warranty or assurance product from the auction on vehicles 8. Vehicles with over (auction choice) miles purchased.
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