2021 ARBITRATION POLICY - Carolina Auto Auction
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2021 ARBITRATION
POLICY
Arbitration Policy Effective March 1, 2021
documentation to verify the
I. General Policies: accuracy of a sale.
5. Any vehicle consigned with the
1. Fair and Ethical Sale Auction is subject to
government inspection, with or
The sales made at an Auction without prior notice, by the FBI,
are intended to promote fair and State Police, National Auto
ethical treatment to both the Theft Bureau, Local Police
Buyer and Seller. If Auction Authorities, any other
governmental agency, or quasi-
determines that the transaction
governmental agent.
is not fair and ethical to either
party, the Seller and the Buyer
agree that Auction may cancel 2. Auction VIN Policies
the sale, at its sole discretion.
All vehicles consigned must
Federal, State, and Local laws
have a visible public Vehicle
supersede these policies where
Identification Number (VIN)
applicable.
plate attached to the vehicle by
the manufacturer or state
1. Auction Role in Sale: inspector (state reassigned VIN
only). Those vehicles having a
1. Auction makes no
representations or guarantees
reassigned VIN plate by the
on any vehicle sold or offered State in place of the original VIN
for sale. plate must be announced or will
be subject to sale cancellation or
2. Auction is not a party to the
Buyer return. Auction reserves
contract of the sale. The sales
contract is between the Seller
the right to refuse the sale of
and Buyer only. any vehicle in which the VIN
plate appears to be altered in
3. All vehicles bought or sold on any way.
the premises must be processed
through the Auction office.
Failure to do so will result in
suspension of trading privileges
at Auction.
4. Auction reserves the right to
review any audio/video
2
Arbitration Policy Effective March 1, 2021
less or 20 calendar years and
older are automatically As-Is.
II. Sale Light System:
Blue Light Title Attached/Title
Auction has a standard Unavailable/Title Absent: This
light/video display system to light is used to announce that
describe the condition and/or the title is not present (auction
disclosures related to the vehicle managed location) at the time of
being sold. The system is the sale. For Auction rules
defined as: regarding titles please refer to
the Title Arbitration Policy
Green Light – Auction section. If “title
Guarantee: The green light attached/unavailable/ absent” is
signals that this vehicle is not announced, a vehicle could
guaranteed under the conditions be arbitrated for no title in the
outlined in this policy by the absence of auction company
seller. Any defects or issues policy.
requiring disclosure per this
policy should be announced
using the green and yellow III. Seller
lights.
Responsibilities:
Yellow Light – Limited
Guarantee: This light is an 1. Seller will be held responsible
indication to the Buyer that the for the accuracy and
completeness of all
Auctioneer or Selling
representations or descriptions.
Representative has made This includes handouts,
announcements that catalogues, vehicle markings,
qualify/clarify the condition or condition information or vehicle
equipment and limit arbitration listings and verbal or written
of this vehicle in conjunction statements made by Seller,
with the green light or when Auction, Auctioneer or Selling
“limited guarantee” is Representative at the time of
sale. This includes the condition
announced.
report written by or on behalf of
the seller as per the “NAAA
Red Light – As-Is: Vehicles Generic Condition Report
selling under the red light will Position Statement”. The Seller
only qualify for arbitration under understands that the sale
the rules outlined in this policy. light/video display is a binding
All vehicles sold for $2,500 and arbitration representation of
vehicle condition, and isArbitration Policy Effective March 1, 2021
therefore responsible for arbitration responsibilities as
ensuring that their vehicles sell defined by the policy. The
under the correct light in the issue/defect found to be the
lane. cause of the light may be
arbitrated within the stated
2. Mileage announcements are not time period and dollar amount
required for vehicles that are threshold according to
2010 or older and/or deemed Appendix 1.
exempt from Odometer and
Title disclosure laws unless a 6. The availability of a
mileage discrepancy is known manufacturer’s warranty shall
or apparent to the seller. The not affect a Buyer’s right to
Seller may represent miles on arbitrate a vehicle. Regardless
exempt vehicles; any of the warranty coverage in
disclosures made by the Seller terms of the root cause of the
and all known odometer complaint, an announcement
discrepancies are grounds for may be required.
arbitration.
7. In the event of a successful
3. Title discrepancies must be arbitration by the Buyer, the
announced including, but not Seller is responsible for
limited to: not actual miles, reimbursement of all reasonable
salvage, theft recovery, stolen documented expenses incurred
vehicle, flood damage, Lemon by the Buyer (excluding profit,
Law buybacks and trade assist. commissions and detail
charges) on vehicles arbitrated
4. Announcements are required for undisclosed conditions.
for any matters that relate to Reimbursements that qualify
the safety or integrity of the under these guidelines will be at
vehicle including as per the the sole discretion of the
stated dollar threshold and Auction and will be limited to
disclosure requirements stated the reasonable and documented
in this policy, all requirements expenses at auction (wholesale)
under local, state or federal repair cost.
statutes or regulations.
Announcements must be made 8. Seller will not be paid for
verbally and/or disclosed on the vehicles in arbitration until
in-lane screen as well as on the arbitration is settled and
auction invoice/sale vehicles are sold. For
contract/bill of sale or arbitrations occurring after the
equivalent document in a seller has been paid, seller is
physical or online auction required to promptly return the
environment. payment to the auction if the
transaction is voided as a result
5. The announcement of the of arbitration.
presence of warning lights does
not exempt a Seller from
4Arbitration Policy Effective March 1, 2021
unavailable or absent) prior to
IV. Buyer returning the vehicle to Auction
except on vehicles arbitrated
Responsibilities: for undisclosed conditions not
detectable through vehicle
1. Prior to placing bids, the Buyer inspection, including but not
is responsible for inspecting the limited to, not actual miles,
vehicle, listening to and salvage, theft recovery, stolen
reviewing any verbal or written vehicle, flood damage, Lemon
announcements and disclosures Law buybacks and trade assist.
made by the Seller, Auction,
Auctioneer or Selling 4. The Buyer is financially
representative. Buyers are also responsible for any pending sale
responsible for reviewing all and assumes all risk of loss until
pertinent information available arbitration is final.
online, including, but not limited 5. The Buyer or Buyer’s agent
to, announcements, disclosures, (transporter or driver) must
condition reports, pictures and document any damage on the
online listings. Buyers are also gate release and have signed
responsible for observing and off on by an auction
understanding the sale lights representative and reviewed by
(Green, Yellow, Red, and/or management prior to removing
Blue), which identify various the vehicle from the Auction or
sale conditions for the vehicle. facilitation service provider’s
Once the vehicle is sold, the location. Auction or facilitation
Buyer must review the Auction service provider and Seller will
sales receipt or appropriate not be responsible for any
document to confirm the damage not identified on the
vehicle price, disclosures and gate release once the vehicle is
announcements are correct removed from the location.
before legibly printing and
signing their name or 6. The Buyer shall not surrender
digitally/electronically signing possession of the vehicle to any
the Auction sales receipt or claimant, except as required by
appropriate document. legal process, nor shall Buyer
voluntarily pay or acknowledge
2. It is strongly encouraged that a the validity of any claim,
Buyer should have a Buyer without the prior approval of
Protection Plan (BPP), warranty Auction. Time is of the essence.
or assurance product from the Any failure on the part of the
auction on vehicles purchased. Buyer, after becoming aware of
3. Buyer agrees to be liable for said claim, to notify Auction of
any and all work done to a any claim in a timely manner or
vehicle (including a vehicle failure of the Buyer to
purchased as title attached, cooperate in defending any
5Arbitration Policy Effective March 1, 2021
such claim shall relieve Auction clear of all liens and
and seller of any liability under encumbrances. This includes
this policy. any brand (such as “salvage”)
noted upon the current or any
7. A vehicle is not considered prior certificate of title unless
returned until received, such encumbrances were
inspected and approved for announced at the time the
return by Auction management. vehicle is sold through Auction
Any vehicle returned must be in and for a period of four (4)
the same or better condition as years from the date of sale.
when sold. Any vehicles Seller’s liability under this title
delivered to and left on Auction guarantee shall never exceed
premises without Auction the Auction sale price (the
approval remain the sole “maximum amount”) of the
responsibility of the Buyer. vehicle, and this maximum
Buyer assumes all risk of loss. amount shall be reduced by two
Vehicle must be returned in a percent (2%) per month
timely manner consistent with following Auction sale date. All
Auction direction. liability under this title
8. Vehicles with over 500 miles guarantee shall expire and
from when sold are not eligible terminate four (4) years after
for arbitration. Auction sale date. Auction will
not be responsible for any
9. The Seller/Auction shall not be expenses incurred on vehicles
liable for any vehicle sale or returned for late title.
repairs made by the Buyer
before the title is received by 2. Seller warrants, represents and
the Buyer. If the title has been guarantees possession and
mailed from Auction to Buyer, conveyance of a certificate of
Buyer may not return vehicle. title, properly executed, valid in
the state where the transaction
is occurring and clear of all liens
V. Title Arbitration and encumbrances (except
current year DMV fees in
Policy: California), and seller warrants
and will defend the title against
the claims and demands of all
1. All titles submitted by Seller
persons whatsoever.
must be in Seller’s company
name on title or on a properly 3. Seller will ensure that the title
executed reassignment form. must be reassigned directly to
The Seller guarantees the titles Buyer. Any title assigned
of vehicles that are sold through directly to facilitating auction
Auction. This guarantee of the will not be accepted.
title warrants that the title shall
be marketable and free and 4. Seller will not be paid for
6Arbitration Policy Effective March 1, 2021
vehicles until a transferable title the auction first, the car or the
is received. title, will take precedent. If,
after 90 calendar days, Seller
5. Auction accepts no has not produced negotiable
responsibility for non-titled title and Buyer has not returned
vehicles sold without title. Seller the vehicle, this title guarantee
must announce the vehicle shall not apply and Auction
being sold with a bill of sale shall have no duty to produce
only and that there is no title to the certificate of title to the
transfer. All non-titled vehicles Buyer and shall have no duty to
and equipment will be sold “As- pay Seller and, at which point,
Is.” the auction will deposit the
6. If the title problem is due to a buyers check.
clerical or coding error, or 10. Vehicles lacking a properly
incomplete documentation, assigned title or reassignment
Auction shall be given to transfer a title at time of sale
reasonable time after receiving must sell “Title Attached/Title
notice to have the error Unavailable/Title Absent,” with
corrected. the Blue light on.
7. Applications or other 11. Vehicles lacking lien release or
documents related to a a valid repo affidavit for a
duplicate title will not be repossessed vehicle (where
accepted, unless announced as allowed by law) must be sold
such or if allowed by the “Title Attached/Title
appropriate jurisdiction. Unavailable/Title Absent,” with
8. Where legal by municipal the Blue light on.
and/or state law, any vehicle 12. In regard to defect in title, and
being offered for sale with a in any matter relating to
foreign (non-US) title, must be odometer mileage, odometer
disclosed prior to the sale by statements, or damage
the seller. Disclosure disclosure statements: Seller
requirements and time limits and Buyer agree to indemnify
are subject to local auction title and hold harmless Auction from
policy. Vehicle must be legal to any liability, loss costs, damage
sell in the United States. or expense, including attorney
9. Seller has up to a maximum of fees which may arise either
21 calendar days for title to be directly or indirectly from the
received by Auction. (Sale day sale and purchase of the
is Day 1). After 21 calendar day consigned vehicle including but
period, it is the Buyer’s option not limited to title services
to return the vehicle or wait a provided.
reasonable period of time for 13. Whenever any claim is made
the title. Whichever arrives at by any person against the title
7Arbitration Policy Effective March 1, 2021
of a vehicle, whether by suit or compliant. Only vehicles
otherwise, the Buyer, after properly converted to U.S.
becoming aware of said claim, specifications can be sold and
shall immediately notify must be announced as such.
Auction. This involves giving full
particulars of claim, cooperating 3. Required Conversion
fully in defending any legal All other vehicles imported
action, and in taking other steps must be imported through a
to minimize possible loss. Registered Importer.
Registered Importers are
required to post a bond with
VI. Previous the U.S. Department of
Transportation and/or
Canadian and/or National Highway
Transportation Safety
Grey Market Administration. All vehicles
imported through a
Vehicles: Registered Importer must
have:
1. A “Previous Canadian”
disclosure is required for any (i) U.S. Safety Standard
vehicle (regardless of Certification Label that
manufacturing origin) having identifies the Registered
been registered in a Canadian Importer
province. Additional (ii) Valid U.S. Title or Legal
announcements may be Foreign Title
required as well due to the use (iii) Meet ALL Federal NHTSA,
in Canada (i.e. Full or partial D.O.T. and/or E.P.A. Mandated
voided warranty, foreign title Guidelines
and etc.) (iv) Documentation must be
provided at any time by seller.
2. Any vehicle not originally built (v) Cleared the mandated
to U.S. specifications can, under wait time.
certain circumstances, be
imported through a registered All vehicles, whether imported
importer who modifies the by a Manufacturer or a
vehicle to comply with U.S. Registered Importer, must
equipment and safety show miles per hour on the
regulations (DOT and NHTSA) speedometer and miles
and then certifies it as traveled on the odometer.
compliant, and an independent Title 49, United States Code,
commercial importer who Chapter 327, Section 32704,
modifies the vehicle to comply allows replacement
with U.S. emissions regulations odometers without a door
and then certifies it as frame sticker if the conversion
8Arbitration Policy Effective March 1, 2021
from kilometers to miles can defect that is on the initial
be done without changing the arbitration claim. Repair costs
distance traveled by the will be determined by the
vehicle; therefore, auction and will reflect the
replacement of an odometer auction cost to repair. If price
under these circumstances adjustment is made and
does not have to be accepted, vehicle becomes “As-
announced by the Seller. Is, No Arbitration” property of
the Buyer, and is not subject to
any further arbitration. The
VII. Arbitration auction management makes the
binding decision upon both the
Guidelines: Buyer and Seller on all
arbitration matters.
Vehicles that have any of the 3. Fees: Auction reserves the right
defects outlined in Appendix I to assess an arbitration fee to
that were not disclosed by the the Buyer. If the arbitration is
seller or announced at the time valid, Auction reserves the right
of sale must be reported to to assess an arbitration fee to
Auction within the time frame the Seller in addition to any
charges associated with the
noted below in order to be
arbitration.
eligible for arbitration. Vehicles
must be returned to Auction in 4. Not subject to arbitration:
the same or better condition a. Vehicles 20 calendar years old
than when purchased with no or older or sold for $2,500 or
more than 500 miles. less are sold strictly As-Is and
can only be arbitrated per
1. Time Period: Refer to Appendix guidelines in Appendix I.
I for arbitration time periods. b. Kit vehicles, trailers,
Sale day is Day 1. Arbitration motorcycles, RVs, watercraft,
shall end at the close of and homemade vehicles, or
business as determined by modified vehicles are sold “As-
Auction. Is” and cannot be arbitrated for
odometer, structural issues,
2. Process: Any single mechanical
warranty books, or model year.
defect that has a repair cost of
$600 or more is subject to c. Inherent Conditions: No
arbitration on vehicles sold arbitration can be based on
under qualifying lights and lack conditions that are inherent or
of announcement by the seller typical to a particular model or
per Appendix I. Each vehicle manufacturer. Manufacturer
transaction is allowed one warranty guidelines will be used
chance at arbitration. The where applicable to determine
arbitrator will inspect only the whether the condition is
9Arbitration Policy Effective March 1, 2021
inherent. Additional resources parking sensors, and in-lane
can be found on NAAA’s assist.
Standards page at h. Unsafe vehicles: Auction
www.NAAA.com. reserves the right to reject any
d. Vehicles with “cold start” issues vehicle that management
will have the arbitration period judges to be unsafe.
re-opened for evaluation under i. Vehicles may not be arbitrated
cold start conditions. Auction based solely upon information
notification from buyer is not to provided in Electronic Data
exceed 1 day after sale day. Vehicle Histories (EDVH) or
e. Manual Transmissions: Vehicles printed EDVH reports. Auction
with standard (full or partial and Seller are not bound by
shift) transmissions cannot be information listed in EDVH.
arbitrated for manual clutch Examples of EDVH include
assemblies unless the defect Carfax, AutoCheck, NMVTIS,
will not allow a safe test drive. etc. The facilitating Auction may
f. Wearable Items: Auction will investigate vehicle history
not arbitrate vehicles for based on information found in
wearable items normally worn EDVH for information that may
vs excessively worn or impact arbitration.
inoperative (not inherent). For j. Auction is not bound by vehicle
purposes of this policy wearable grades or other types of scoring
items are defined as parts of the systems placed upon the
vehicle that the manufacturer vehicle. Buyers may only
recognizes the need for arbitrate a vehicle based upon
replacement/adjustment during damage or defects that were
the expected life of the vehicle present at the time of the sale
driven the average miles per of the vehicle.
model year (15k). These items k. Online sales without a written
are normally identified in the vehicle condition report will be
Owner’s Manual for routine subject to In-Lane policies (A)
check and replacement and as detailed in this policy.
would include, but are not
limited to, air ride suspensions,
tires, wipers, brake pads, shoes,
rotors, belts, hoses,
lubricants/fluids, timing belts,
bulbs, filters, shocks and struts.
g. Auction will not arbitrate, nor
be responsible for, non-
operable, self-autonomous
driving systems. These systems
include, but are not limited to,
cruise control, self-parking,
10ARBITRATION POLICY GUIDELINES APPENDIX I
Disclosure/Announcment Required Arbitration Time Period
NAAA Seller Disclosure/Announcment Requirments Green Light Only Red Light Only Green Light Only Red Light Only
Major Components
Engine Problem* YES NO A or C N/A
Cracked or Repaired Block* YES NO A or C N/A
Transmission Problem* YES NO A or C N/A
4x4 System Inoperable* YES NO A or C N/A
ABS Problem* YES NO A or C N/A
Emission Control Equipment Missing or Inoperable* YES NO A or C N/A
Air Conditioning System* - Current Calendar Year Only YES NO A or C N/A
SRS - Missing or Problem with Airbags* NO NO N/A N/A
Hybrid or Electric Vehicle Battery Problems and/or Missing or Inoperable Battery Charger* YES NO A or C N/A
Vehicle History Issues
Structural Damage/Certified Structural Repair or Replacement/Structural Alteration Per NAAA Structural
YES YES B or C B or C
Damage Policy, Including Concealed Collision Damage
Not Actual Miles/Inoperable Odometer YES YES B or C B or C
Total Loss and/or Salvage Retention (By Insurance Records)** YES YES B or C B or C
Theft Recovery/Stolen Vehicle (Including History) YES YES 30 Days 30 Days
Bonded, Insurance and/or Salvage Titles (Including History)** YES YES B or C B or C
Flood Damage (By Auction Inspection) YES YES 30 Days 30 Days
Lemon Law/Manufacturer's Buyback** YES YES B or C B or C
State-Issued VIN Plates (Including Kit Vehicles) YES NO B or C N/A
All Taxis and Livery Requiring Local or State Licenses and Law Enforcement Vehicles YES NO B or C N/A
Previous Canadian Vehicles YES YES B or C B or C
Grey Market Vehicles** YES YES B or C B or C
Vehicles Being Sold with No Title (Bill of Sale Only) YES YES B or C B or C
Voided Factory Warranty YES NO B or C N/A
Fuel Conversion YES NO B or C N/A
Non-Original Engine (Excludes Items Replaced Under Manufacturer's Warrenty)
YES NO B or C N/A
Arbitration Policy
Current Calender Year and Up to 4 Years Old
Logo or Decal Misrepresentation - Calendar Year and up to 10 Years Old YES YES A or C A or C
Biohazard and/or Infestation Vehicles (Existing or Cleaned) YES YES A or C A or C
Flood Damage History (Discovered BY DMV and/or Insurance Company Records) YES YES 120 Days 120 Days
Other Issues
Vehicle Accessory Electrical Problems* (Current Calendar Year and up to 4 Years Old) Covered
YES NO A or C N/A
Electrical Options are Limited to: Power Sliding Doors, Power Lift Gates, Sunroofs, and Convertible
Paintwork (3 Panels or More) on Current Calendar Year and Newer (Excludes Bumpers) YES NO A or C N/A
Vehicles Not Equipped with Air Conditioning (Excludes Vehicles 10 Calendar Years Old and Older) YES NO A or C N/A
Vehicles Being Sold with a Government Release for Title 7 Days After Receipt of Title 7 Days After Receipt of Title
YES YES
(i.e., 27A, SF-97-1, and etc.), CO, MSO, or Repo Affidavit Title (If Required By Law)
Pending State or Local DMV Fees or Taxes Over $100 Due On Vehicle (If Required By Law) YES YES 7 Days After Receipt of Title 7 Days After Receipt of Title
Any Disclosure Required By Law YES YES 7 Days After Receipt of Title 7 Days After Receipt of Title
Time Period vs. Sale Channel Breakdown
"A" Inlane-Sale Day Only "B" Inlane-7 Calendar Days Only "C" Online-2 Calendar days within verified receipt of the vehicle from seller and/or auction not to exceed
11
Effective March 1, 2021
10 calendar days from the original sale date.
*Must disclose defects that are singularly $600 or more to repair or replace. Arbitration claims initiated after the stated time period will be addressed via the depriciation formula
**These transactions may be subject to arbitration regardless of the stated time limits. description in "Title Arbitration Policy" (Paragraph 1).Arbitration Policy Effective March 1, 2021
fastened. For purposes of this
VIII. Structural policy, there are three macro
types:
Damage, (i) Unibody - A type of
Alteration or structure whereby the floor
pan assembly, roof
Certified bows/braces, pillars, etc. are
bonded together into one
Structural Repair unit, thereby eliminating the
need for a separate
or Replacement conventional structure
(ii) Unibody on Frame - A
Policy type of structure whereby a
unitized structure is bolted to
The purpose of the NAAA a conventional structure.
Structural Damage Policy is to (iii) Conventional Structure -
define and clarify terminology A type of structure consisting
of two symmetrical rails
associated with structural issues
(beams) connected by various
and to specify the disclosure cross-members.
requirements of the seller for
vehicles offered at NAAA 2. UVMS - Used Vehicle
affiliated auctions. The policy is Measurement Standard. The
intended to provide adequate commercially acceptable
disclosure to the buyer for measurement deviation from
informed purchase decisions and the vehicle’s original structural
specification in order for any
to limit arbitrations for the seller.
deviation not to be considered
This policy, along with the main structural damage.
Arbitration Policy will serve as
the primary criteria for all 3. Permanent Damage (aka
arbitration proceedings. “Kinked” or “Broken”)- The
result of two or more objects
striking or coming together at a
1. Definitions significant change in velocity
that permanently deforms the
1. Vehicle Structure - The main structural component(s)
load-bearing platform of a rendering it non-repairable per
vehicle that gives strength, the manufacturer.
stability and design exclusivity
and to which all other
components of the vehicle are
12Arbitration Policy Effective March 1, 2021
2. Recommended light condition. Disclosures are
required for the following:
Disclosures
1. Any/all existing permanent
1. Structural Damage - Damage (non-repairable aka kinked or
to the structure or a specific broken) structural damage as
structural component of the defined in this policy.
vehicle. Often referred to as
frame damage, although it also 2. Improper and/or substandard
applies to Unibody and Unibody prior repairs (not meeting OEM
on Frame structures in addition repair guidelines).
to Conventional Frame.
3. Repairs not certified using OEM
2. Certified Structural guidelines or to be within the
Repairs/Replacement - Repairs UVMS Improper alterations to
to a specifically identified the structure Lengthened or
structural component of a Shortened structure verified by
vehicle that has been certified visual inspection.
to be within the Used Vehicle
Measurement Standard (UVMS). 4. Altered suspension that
requires the structure to be
3. Structural Alteration - An modified from its OEM form.
alteration to the vehicle’s
structure including a 5. After-market accessories
lengthened or shortened frame, installed or removed to the
a modified suspension, or the structure.
installation or removal of after- 6. Towing packages installed (or
market accessories. removed) where new holes are
drilled, OEM holes are enlarged,
3. Seller Disclosure or if the towing package is
welded or brazed to the
Requirements structure.
Sellers must disclose permanent 7. Multiple access holes
structural damage, any (regardless of size) or singular
access holes greater than 5/8".
structural alterations, structural
Access holes between 1/4" and
repairs or replacements 5/8" are subject to disclosure
(certified or non-certified) as based upon location and
outlined in this policy prior to condition of structural
selling a vehicle at auction component.
regardless of sales channel or 8. Corrosion of structural
13Arbitration Policy Effective March 1, 2021
components determined by one have been disclosed under this
or more of the following; when policy, even though the vehicle
the substrate loses its shape, is within the UVMS. If a
the original bonds near the structural issue is properly
affected area are loose or are disclosed, the vehicle may only
no longer in existence. be arbitrated for improper
repair of the designated area,
9. Structural tear damage (i.e. existing permanent damage or
transport tie down) if more than repairs to other areas of the
1" in length (measured from tear vehicle not disclosed, or for
start/stop points). failure to be within the UVMS
10. Damage due to contact with that was verified by visual
parking abutments and/or road inspection.
debris that permanently 2. Damaged or replaced radiator
deforms structural components core supports or rear body
outlined in this policy. panels do not require a
11. Roof bows/braces that have structural disclosure under this
been modified, have existing policy.
permanent damage or removed. 3. Damage to the aprons, rail floor
A replaced roof skin is not a pan assembly, inner wheelhouse
required disclosure in terms of (upper or lower), D pillar (if
the Structural Damage Policy. equipped) or other ancillary
12. The C pillar/quarter or Cab structural components on a
panel may or may not be a unitized structure in the area
structural component(s) as per where the radiator core support
the vehicle manufacturer. or rear body panel attaches will
require a disclosure if
permanent damage exists to
4. Arbitration Rules for apron 4” beyond core support.
Structural Damage, 4. Brazed exhaust hangers are not
Alteration, Certified a required disclosure under this
policy.
Repairs or Certified
5. Facilitating auction will, at its
Replacement discretion, have a vehicle
measured according to the
1. A vehicle may be arbitrated if it
UVMS at a facility of its choice.
has undisclosed existing
Prior to sending the vehicle for
permanent damage alteration,
measurement, the auction
Certified Repairs or Certified
reserves the right to complete a
Replacement, which should
visual verification of the
14Arbitration Policy Effective March 1, 2021
physical condition of the vehicle
to determine that it should be 8. Buyer must arbitrate any/all
measured. If the measuring structural misrepresentations as
facility determines that the outlined in this policy within
vehicle is within the UVMS, the published timelines (outlined in
buyer of the vehicle will be the main Arbitration Policy
responsible for the charges paid Guidelines) from date of
to the facility. Likewise, if the purchase (purchase day counts
measuring facility determines as Day 1).
that the vehicle is not within the
UVMS, the seller will be 9. The buyer must contact and
responsible for the charges paid follow the arbitration process of
to the facility. the auction where the vehicle
was purchased including the
6. Visual evidence supersedes auction’s direction for return of
any/all mechanical or electronic the vehicle and the timeframe
measurements. allowed for the vehicle to be
returned.
7. For measurements according to
the UVMS, the following 10. In the event of improperly
guidelines will apply: disclosed structural damage by
the seller, the buyer will be
(i) The vehicle structure must entitled to reimbursement in
measure to a total tolerance accordance with the main
of no more than +/- 8 Arbitration Policy.
millimeters (mm) of published
specification of length, width
and height at control points
that capture the front (2),
IX. Flood, Damage
center (4) and rear (2)
sections of the vehicle.
Policy
Vehicles are frequently exposed
(ii) Symmetrically
(comparative measure from to moisture during their ordinary
side to side and point to point operation, maintenance, and
based on point reconditioning. Occasionally,
measurement), the length, such exposure may leave
width and height must residual marks or indicators
measure to a difference of no similar to those left by exposure
more than 6 mm. Upper body or immersion of the vehicle in
measurements (tram gauge)
by themselves will not be
floodwater. In determining what
adequate. conditions require disclosure or
15Arbitration Policy Effective March 1, 2021
in arbitrating vehicles for flood 2. Disclosure Required
exposure/damage it is critical
that the total condition of the Disclosure is required and
vehicle be considered including arbitration shall be allowed
VIN data history. Disclosure under the following conditions:
requirements can be found in 1. The title has been correctly
Appendix I. branded indicating flood history
of the vehicle.
1. Disclosure Not 2. Any of the following
Required components have been
damaged due to stream, pond,
puddle or floodwater
No disclosure is required nor is
immersion/ingress:
arbitration allowed for the
following types of water (i) Front or rear internal
exposure, provided that none of lighting or wiring harnesses
the components outlined below (ii) Engine and its major
components
are damaged:
(iii) Transmission and
1. Rain, snow or sleet due to open
differential
windows, doors or tops or
(iv) Dash instrument panel
leaking seals.
and wiring
2. Car wash or rinse water. (v) Passenger seat cushions
(vi) Power seat functions or
3. Carpet or upholstery window motor
shampooing or cleaning. (vii) Major sound system
components
4. Stream, pond, puddle or
floodwater that does not rise
above the rocker panel or
otherwise enter the passenger
compartment.
5. Stream, pond, puddle or
floodwater that enters the
luggage compartment, but does
not damage any electrical
components (such as lighting or
wiring harness) or does not
enter the passenger
compartment.
16Arbitration Policy Effective March 1, 2021
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