Stark Auto Sales Auction

DEFINITIONS

Arbitration – The dispute resolution process provided by the Auction as described in the Arbitration section below and a means to resolve conflicts between Buyers and Sellers regarding vehicle condition, disclosures, sale terms etc.

Arbitrator – an individual or individuals appointed by the Auction to facilitate the resolution of Arbitration claims.

Arbitration Dollar Threshold – The minimum dollar value of a repair or issue that qualifies for Arbitration, set at $750 for vehicles under $40,000 and 2% of sale price for vehicles $40,000 or more.

Arbitration Periods – The time limits for initiating and Arbitration claim.

Auction – the business entity known as 812367 Ontario Limited & 2420846 Ontario Inc. operating as Stark Auto Sales and its facilities and personnel.

Auction Card – A photographic identification card or badge issued through the Auction.

Auction Policies – The rules, procedures, and requirements set out by the Auction, as amended from time to time, which govern all transactions and participation.

Auction Privileges – The rights granted by the Auction to participate in its sales and services, subject to compliance with Auction Policies.

Buyer – A customer who offers to bid, offers to purchase, or purchases a vehicle or vehicles through the Auction.

Customer – Any person or business using or accessing the Auction platform and its services.

Data – all information or records (oral, written, digital, electronic, or tangible) transmitted, received, or stored on Auction systems.

Direct Bid – a bid manually entered online by the Buyer for a specific dollar amount, confirmed through the Auction’s bidding system.

Disclosure – The provision of details regarding material facts, defects or damages of a specific vehicle as documented by the Seller, Auction or a Vehicle History Report.

Driving School Vehicle – A vehicle that, prior to being consigned to the Auction, was used as a driving school vehicle.

Emergency Vehicle – A vehicle that, prior to being consigned to the Auction, was used as an emergency services vehicle.

Fees – Charges imposed by the Auction for its services, payable by Buyers, Sellers, or third parties, subject to change without notice.

Gate Pass – A physical or digital document issued by the Auction confirming that payment has been made in full and authorizing the release of a purchased vehicle from Auction premises.

Grey Market Vehicle – A vehicle not originally manufactured for sale in Canada or the United States, or which does not comply with North American Standards.

If Bid – A conditional bid that does not meet the Seller’s reserve price and remain open until the Seller decides whether to accept or reject the offer. (aka Phone Call)

Indemnity – The obligation of a Customer to reimburse and hold harmless that Auction against losses, liabilities, damages, or expenses resulting from the Customer’s breach or actions.

Irreparable – A vehicle determined to be incapable of being repaired or made roadworthy, suitable only for parts or scrap.

Manufacturer Repurchase – A vehicle repurchased by its manufacturer under applicable arbitration plane of lemon law provisions.

Membership Suspension – The temporary or permanent suspension of a Customer’s right to participate in the Auction due to breach of Auction Policies or non-compliance.

Out of Province Vehicle – A vehicle previously registered in a province other than that in which it is currently being sold.

Police Vehicle – A vehicle that, prior to being consigned to the Auction, was used as a police vehicle.

Proxy Bid – A bid placed electronically by entering a maximum amount the Buyer is willing to pay, with the Auction system automatically bidding on behalf of the Buyer up to that amount.

Racing Vehicle – A vehicle that, prior to being consigned to the Auction, was used as a racing vehicle.

Re-run – The re-entry of an unsold vehicle into a subsequent sale conducted by the Auction.

Rebuilt – A vehicle previously branded as Salvage that has since been repaired and recertified under Provincial law.

Rental Vehicle – A vehicle that, prior to being consigned to the Auction, was used as a daily rental vehicle.

Reserve Price – The minimum acceptable dollar amount established by the Seller for a vehicle.

Set Off – The Auction’s right to deduct unpaid Fees or other amounts owing from funds payable to a Customer or Customer affiliate.

Taxi / Limousine – A vehicle that, prior to being consigned to the Auction, was used as a taxi or limousine.

Tied Proxy Bid – The situation in which two or more Buyers submit the same Proxy Bid, in which case priority is given to the first bid received.

TKU – True Kilometers Uknown, a vehicle which the actual mileage cannot be verified due to missing, altered, or unreliable records.

Total Loss – A vehicle deemed uneconomical to repair by an insurer.

Transportation Losses – Any losses, damages, or expenses incurred during the transportation of a vehicle.

Vehicle History Report – A third-party report that provides historical information about a vehicle, including ownership, accident history, mileage, and title status. (i.e. Carfax)

Vehicle – Any motor vehicle, motorcycle, trailer, recreational vehicle, boat, or related equipment consigned or purchased through the Auction.

VIN – Vehicle Identification Number, the unique identifying number assigned to a vehicle by its manufacturer or in accordance with Provincial law.

Void Sale – A cancelled transaction, declared at the sole discretion of the Auction, where circumstances such as material errors or omissions justify removal of a vehicle from sale.

TERMS AND CONDITIONS

1. Application: The following Auction Policies govern all business conducted at Stark Auto Sales Wholesale Auction and are implied terms and conditions of every agreement (oral and written) that are entered into with the Auction and with every Buyer and Seller. By doing business at Stark Auto Sales, you are agreeing to observe and be bound by the following Auction Policies.

2. Notice of Changes: Auction Policies may be amended at any time and notice of amendments will be posted on our website www.starkautosales.com

3. Governing Law: This Agreement will be governed by, interpreted under, construed and enforced in accordance with the law of the Province of Ontario and the laws of Canada applicable therein.

4. Data Ownership: All information and records, whether oral, written, visual, electronic, digital or tangible (collectively “Data”) that are transmitted, received or stored on or using the Auction’s systems, platforms, equipment, computers, servers or premises is the property of the Auction. The Auction has the right to use, control access to, aggregate, modify, package, benefit from, remove, destroy or sell Data in whole or in part. Data that contains Personal Information will only be used and disclosed in accordance with the Auction’s Privacy Policy.

5. Auction’s Role:

We provide Services that create a fast, efficient, safe and reliable marketplace for Buyers and Sellers to exchange used vehicles. We do not take title to vehicles bought or sold through our Auction services and facilities. The Auction is not a party to the contract of sale between the Buyer and the Seller.
Auction Policies regulate our marketplace so that Sellers can be confident they will be paid for the vehicles they sell on our platform, and Buyers can be confident of the quality and condition of the vehicles they buy on our platform. Auction Policies are intended to promote fair and ethical treatment of all parties involved.
The Auction is paid Fees, usually by both the Sellers and Buyers and sometimes by third parties for its Services.
The Auction offers Arbitration services to quickly and fairly resolve disputes between Buyers and Sellers.

6. Limitation: Stark Auto Sales makes no representation, warranty or guarantee as to the accuracy or completeness of the description, equipment, warranty, service policy, title, history and Carfax, odometer reading or any disclosure declarations of damage or defects pertaining to Vehicles offered for sale.

7. Fair Play: Stark Auto Sales and its Customers must conduct themselves with integrity. All parties must conduct business fairly and honestly.

8. Auction Privileges: Stark Auto Sales reserves the right to temporarily or permanently suspend a Customer’s Auction privileges at any time. Breach of Auction Policies could result in the permanent or temporary suspension of Auction privileges.

9. Membership Suspension: Auction retains sole discretion in determining whether a Buyer’s or Seller’s membership should be suspended. Instances where a membership may be suspended include but are not limited to non-payment for a vehicle, failure to disclose, failure to pick-up a vehicle, bad conduct towards staff, management and/or customers, breach of Auction policies etc. The Auction also retains sole discretion in determining whether a Buyer or Seller should have their membership reinstated. The Auction may charge a fee if in its discretion the Auction decides reinstatement is the proper action to take.

10. Customer Registration: Upon completion of the Auction registration package, you will be issued a customer ID number, authorizing you to buy and sell Vehicles at all In‐ Lane Sales in Canada. You will be responsible for all transactions conducted with your Auction ID. Sharing or lending your Auction ID is strictly prohibited. At In‐Lane Sales, Customers are required to wear their Auction Card/Badge at all times in the bidding area. For Online Sales, you will need to register through the Auction’s Online system in order to receive an online user id and password. You are responsible for maintaining the confidentiality of your user ID and password and will be liable for all transactions conducted with them. Please immediately notify the Auction in writing upon the discovery of any unauthorized use of you Auction ID or online account. Sharing user IDs and passwords is strictly prohibited.

11. Compliance with Law: Customers must know and comply with all national, provincial and local laws that regulate the right to buy and sell Vehicles at Stark Auto Sales Auction.

12. Courtesy: All customers and employees are expected to always act professionally and courteously.

13. Dealers Only: Only registered motor vehicle dealers are permitted to buy Vehicles at our Auctions. Retail customers are not permitted to “shoulder surf” Online Sales. Customers may not permit retail customers to view an Online Sale or the prices of the electronic inventory of vehicles posted through the Auction’s Online System.

14. Guests: Guest are permitted to attend auctions but must sign up with Auction staff prior to entering the bidding area. Guests will receive a temporary badge that will grant access for that particular auction date. Anyone without a badge will not be granted access. Guests are not permitted in the vehicle compound at any time.

15. Safety: Due to the inherent risk and nature of moving vehicles, there are some procedures, rules, and precautions that everyone visiting our Auction facilities should follow. These are for your protection as much as for the protection of our employees. Customers and their employees, agents, contractors, representatives and invitees must observe and comply with the Auction’s safety rules as set out below.

Always be aware and cautious of your surroundings. There is always a lot of activity at an auction, especially on sale day.
No one under 16 is allowed in the sale arena or on the lot.
Everyone in the bidding area must wear his/her Auction Card or Visitor Badge. Everyone on the lot must wear either his/her Auction Card or Visitor Badge.
If you are injured on Auction premises, please contact an Auction employee.
Must adhere to Auction staff instructions.

16. Vehicle History Reports / Carfax: Each Vehicle shall be accompanied by a Vehicle History Report (Carfax Report). The Auction is not responsible for the accuracy of the Vehicle History Reports.

If a vehicle sells, the cost of the Vehicle History Reports / Carfax is charged to the Buyer.

17. Vehicles Sold Prior to Auction: All vehicles consigned for sale at Stark Auto Sales must be run through auction. Vehicles sold before reaching auction will be subject to all applicable fees.

18. Tampering: Odometer or parts tampering is strictly prohibited, and offenders will be subject to immediate and permanent suspension.

19. Fees and Payment: In consideration of the performance of the Auction’s Services, you agree to pay the Auction all applicable Fees. Fees are due and payable on the date the Services are provided. You agree that the Auction may deduct the Fees and any other amounts owing by you to the Auction from any amounts that may be payable by the Auction to you, including Vehicle sale proceeds. Interest on overdue payments will accrue at a rate of 2% per month. You acknowledge and agree that the Auction may change its Fees at any time without notice.

20. Set Off: If Customer or any party affiliated with Customer (“Customer Affiliate”) fails to pay Fees or other amounts owing when due, the Auction will be entitled to immediately set off the amount owed by Customer and/or Customer Affiliate from any funds owing by the Auction to Customer and/or Customer Affiliate.

21. Vehicle Risk Liability: The Auction assumes no liability for loss or damage while Vehicles are in the possession of Auction. The Auction does not provide insurance coverage for Vehicles. The Vehicle will be and remain at the Seller’s risk until sold. Once the Buyer’s bid has been accepted as the winning bid, the Vehicle will be at the Buyer’s risk. The Vehicle will remain at the Buyer’s risk unless and until the sale is cancelled through Arbitration. If the sale is cancelled, the Vehicle will revert to the Seller’s risk until the Vehicle is resold.

22. Warranties: Stark Auto Sales shall not be liable to either the Buyer or the Seller for any visible or latent defects in the Vehicle. The Auction does not make or guarantee any warranty, express or implied, including, without limitation, make, condition, quality, merchantability, fitness for a particular purpose, service policy, or odometer reading, with respect to any Vehicle.

23. Indemnity: Customer agrees to indemnify, defend and hold harmless the Auction from and against any and all liabilities, damages, losses (including, without limitation, Transportation Losses), expenses, demands, claims, suits or judgments, including reasonable legal fees and expenses, in any way related to or arising out of the breach by Customer or by any Customer Representative of the Auction Policies.

24. Investigations: Stark Auto Sales will comply with authorities’ requests for information and/or documents concerning you, your business and/or transaction history. Vehicles in custody of the Auction may be subject to inspection by investigative authorities without prior notice to you.

25. Auction Authorization: Customer hereby appoints Auction to be its agent and to act on Customer’s behalf and in Customer’s name for the purposes of completing and executing Vehicle transfer of ownership documents and sales agreements and to do all things and execute all documents and receipts as Customer’s agent relating or incidental to them. Auction may, in its discretion use an electronic signature in accordance with Ontario’s Electronic Commerce Act, 2000, S.O. 2000, and similar provincial and federal laws. Customer authorizes Auction to capture and apply Customer’s digital or electronic signature to Auction sale and ownership transfer documents.

SALE PROCEDURES

In-Person Bidding

1. Tendering a bid: A bid will be deemed to have been entered when a buyer indicates, by speech, expression, hand gesture or signal, or otherwise, the intention to enter a bid equal to or greater than the price being called by the Auctioneer.

2. Accepting a Bid: The Auctioneer will only accept bids that, in his discretion, he believes was intended to be placed and is higher than the bid that is currently be called on the vehicle running at the time. The Auctioneer also has the discretion to not accept bid that he believes are not made in good faith.

3. If Bids: If a final bid on a vehicle does not reach the reserve Price of the Seller, the Auctioneer may conditionally sell the vehicle subject to an “If Bid” (aka “Phone Call”). The Auction will contact the Seller to inform them about the If Bid and the Seller then has until 4:00pm ET to accept the bid or reject it. During that time the Buyer may not withdraw the If Bid.

4. Sale: A Vehicle is sold when the Auctioneer announces that it has been sold. The Buyer with the highest bid tendered and accepted by the Auctioneer immediately before the Sold announcement is the winning bidder and is required to complete the sale.

Online Bidding

5. Entering a Bid: A bid will be deemed to have been entered when a Buyer selects or enters a dollar amount in the appropriate box on the auction screen and confirms the bid by selecting the “Bid Button”. Once a bid has been made it cannot be withdrawn. The bid must be received by the Auction’s server and must equal or exceed the previous bid amount. Notwithstanding the method of bidding, the bidding procedure applicable to In-Person bidding applies to Online Bidding as well. The Auction retains discretion themselves to remove a bid if the Auction reasonably feels that the bid was not made in good faith.

6. Direct Bid: A “Direct Bid” is an online bid that a Buyer enters manually using his numbered keyboard in the appropriate box on the Auction screen. The Buyer can enter any amount within certain numerical increments. This bid, once confirmed by selecting the “Bid Button”, cannot be removed.

7. Proxy Bid: A proxy bid allows a Buyer to enter a maximum dollar amount that they are willing to pay for a vehicle. A Proxy Bid can be entered on a vehicle once the line-up is set for the sale, usually days in advance of the Auction taking place. A Proxy Bid cannot be modified or removed within 2 hours of the Auction start time. The Proxy bid will not be visible to the Seller or the other Buyers. Once the vehicle is on the block, the Auction system will automatically bid for the Buyer up to the maximum dollar amount entered. Once the Buyer’s maximum dollar amount is passed the system will cease to bid for the Buyer. Acceptance of a proxy bid requires the Buyer to complete the sale.

8. Tied Proxy Bid: If two or more online Buyers enter the same proxy bid, the bid received first will have priority.

9. Removal of Proxy Bid: If vehicle information changes after a Proxy Bid has been entered on it, the Auction system will automatically remove the Proxy Bid and an email will be sent to the Buyer notifying them of the Proxy Bid removal and vehicle information change. Vehicle information changes that result in Proxy Bid Removal are limited to disclosures made by the Seller and Auction.

10. Reserve Prices: Reserve Prices are dollar amounts placed on the vehicle by the Seller which indicate to the Auction not to sell the vehicle unless the bidding amount reach or surpass that dollar amount. If the Auctioneer declares an “If Bid” or “Phone Call” at the end of bidding for the vehicle where the final bid is under the Reserve Price, the Seller must express to the Auction if they want to sell the vehicle. (See #3 “If Bids”).

11. Gate Pass: The Buyer or Buyer’s representative (properly signed up with the Auction) must present to the Auction a Gate Pass before a purchased vehicle may be released and removed from the Auction premises. In-person payments will receive a physical Gate Pass. Online payments will receive a digital Gate Pass. Vehicles must be paid in full and ready for release before a Gate Pass is produced to the Buyer. Post-sale Inspections may delay the ready for release status of a vehicle.

12. Retail Option: All vehicles consigned to the Auction will first be run through the Sale at least once. If the vehicle remains unsold after the Sale, the Seller has the option to grant the Auction authority to list the vehicle for retail. Stark Auto Sales has an abundance of retail experience that could greatly benefit Sellers. The Seller, upon consigning a vehicle to Stark, must let the Auction know that it would permit each particular vehicle to be listed for retail. Sellers choosing to permit a vehicle to be listed for retail after it has already been consigned must inform the Auction in writing. If a vehicle does not sell via retail after the initial run through a sale, the vehicle will be entered into the following sale.

13. Void Sale: The Auction, in its sole discretion, can void any sale with removal of a vehicle from a sale if:

There was an error or omission in the description, disclosures, vehicle history report or any other relevant matter relating to the vehicle.
Would be fair and reasonable to do in a particular circumstance.

BUYER RESPONSIBILITIES

1. Understanding the Auction: Stark Auto Sales Wholesale Auction is an Auction for used vehicles. Most used vehicles have defects, wear and tear, scratches, minor damages and more. Buyers should consider these possibilities during their bidding. Buyers should inspect the vehicles and review all vehicle information and disclosures prior to bidding. Buyers should also be aware of all other information disclosed such as vehicle history reports, auction announcements, photos etc. Damages, wear and tear, and defects that are clearly visible in the photos or are disclosed are not eligible for arbitration.

Buyers should also understand the bidding process. The auction is a fast-paced sale and can easily cause confusion. Please ask the Auction for assistance with the process if needed. The Auction assumes no liability for customer mistakes made during the Auction.

2. Payment: Full payment, including vehicle cost and applicable fees, is required within 48 hours from close of business on Sale Day. For example, if the Sale Day is Tuesday, full payment must be received by the Auction by close of business on Thursday. If full payment is not received by the Auction within the 48-hour deadline, the sale will be cancelled, and the vehicle may be placed into the following sale. The Buyer will be liable for all losses incurred including difference in sale price (if applicable), Auction fees and any other associated costs at the discretion of the Auction. Failure to pay on time can result in the permanent loss or temporary suspension of the Buyer’s Auction privileges.

3. Payment Method: The Auction accepts many forms of payment including but not limited to credit card, wire transfer, EFT, certified cheque etc. Personal cheques will not be accepted. Ultimately, method of payment is at the discretion of the Auction.

4. Vehicle Pick-up: Vehicles will not be available for pick-up until payment has been made in full. Once fully paid, a Gate Pass will be provided to the Buyer or the Buyer’s representative. The Gate Pass will allow the Buyer to remove the vehicles from the Auction premises. The Buyer has 24 hours to pick-up the vehicle from business close of the payment deadline date (48 hours after business close on Sale Day). Post-sale inspections and Auction provided transportation are exceptions of the Vehicle Pick-up deadline.

5. Transportation: The auction provides Transportation services for a fee. The fee is dependent on number of vehicles, types of vehicles, and distance travelled. If you are interested in the Auction’s Transportation services, please speak to Auction staff who will provide the Transportation fee schedule and help organize the Transportation.

6. Post-Sale Inspection: Buyers should conduct a thorough inspection of any purchased vehicles. The Buyer must immediately inform the Auction of any missing items that have not been disclosed. Once a vehicle is removed from the Auction premises, Arbitration options become increasingly limited. Post-Sale Inspections are provided as a service for a fee and are highly recommended for vehicles purchased for over $3000. Post-Sale Inspections are not available for vehicles sold as a “Red Light Sale” as they are sold “As-Is”.

7. Rapid Post-Sale Inspections: If a Buyer wants to enlist the Auction to conduct a Post-Sale Inspections but is in a rush to remove the vehicle from the Auction Premises, the Auction provided a Rapid Post-Sale Inspection for an increased fee. The Auction will do its best to make the car available according to the Customer’s wishes but is not liable if not able to do so.

8. Announcements: Buyers must listen carefully to the Auctioneer who on occasion may make announcements before or during a sale. These announcements may have to do with disclosures or change in information. Any Arbitration requests that have to do with and were covered by an Auctioneer Announcement will not be eligible to proceed to Arbitration. Whether a request covered by an announcement may proceed to Arbitration will be at the discretion of the Auction.

9. Vehicle History Reports: Vehicle History Reports are available to the Buyer before Sale Day and during the Sale. Information contained in the Vehicle History Reports that are available before the Sale is not eligible for Arbitration. If a Vehicle History Report is only made available after the Sale, the information contained therein is only eligible for arbitration for a 24-hour period following that time.

10. Sale Lights: Buyers are responsible for observing and understanding the Sale Lights. Information on the Sale Lights can be found under the “Disclosures” section below.

11. Title/Ownership/Registration: Title of a purchased vehicle will not transfer to the Buyer until the vehicle has been paid in full. If a Buyer wants to have the title transferred into a name other than that listed with the Auction for the Buyer, then the Buyer must notify the Auction prior to making payment. Any notifications for a name change subsequent to payment will not be permitted.

SELLER RESPONSIBILITIES

1. Title/Ownership/Registration: When selling a vehicle in the Auction, the Seller guarantees, warrants and represents to the Auction and the Buyer that it is authorized to sell the vehicle, has good title to the vehicles and that the vehicle is free of all liens, charges, encumbrances of any nature or kind whatsoever. All documents required for the Auction to transfer ownership of the vehicle into the Buyer’s name must be in possession of the Auction a day prior to the sale in which the vehicle is entered. If required documents are not in possession of the Auction on the day of the Sale, the Auction in its sole discretion may remove the vehicle from the sale. If the required documents are not provided to the Auction within 48 hours from the end of the sale, the Buyer has the option to cancel the sale only after consulting with the Auction.

2. VIN (Vehicle Identification Number): It is the Seller’s responsibility to ensure that any vehicles consigned for sale in the Auction must have its original VIN plate intact or has been replaced in accordance with the provincial regulatory requirements.

3. Reserve Prices: The Reserve Price refers to the minimum dollar amount that the Seller will accept for a vehicle. The Seller must express to the Auction, verbally or in writing, the Reserve Price that is to be placed on each vehicle the day before the sale it is being entered into. The Seller reserves the right to increase or decrease the Reserve Price at any time; however, the Reserve price change must be expressed to the Auction in writing, and the Reserve Price cannot be changed an hour prior to the sale or during the sale.

4. Fuel: All vehicles consigned for sale in the Auction must have sufficient fuel to drive the vehicle through the vehicle intake process and into the vehicle compound. A refueling fee will be charged in a vehicle does not have sufficient fuel.

5. Re-runs: Unsold vehicles that remain at the Stark Auto Sales Auction compound will be re-run through the Auction on the next Sale Day. The Auction will re-run a vehicle up to 3 times before storage fees begin to accrue on a daily per vehicle basis.

DISCLOSURES

1. Sale Lights: The Sale Lights give Buyers information about the conditions under which the vehicle is being offered for sale. They have to do with the conditions of the vehicles as well as the arbitration rights involved.

Color	Description
Green	Arbitration is allowed on all issues normally subject to arbitration.
Yellow	Disclosures have been made and Arbitration is not available for vehicle conditions that have been disclosed.
Red	Vehicle is being sold “As Is” and Arbitration is limited. Vehicles include but not limited to: (a) vehicles with more than 160,000 km; (b) vehicles older than 10 model years; (c) antique vehicles, recreational vehicles, motorcycles, trailers and motorhomes, boats, snowmobiles, ATV’s, Kit cars and equipment; (d) vehicles sold for less than $3000.
White	One or more of following disclosures apply: (a) Auction not in possession of title/ownership on sale day; (b) Rental vehicle.

Color Combination		Description
Green		Arbitration is allowed on all issues normally subject to arbitration.
Green	Yellow	Arbitration is allowed on all issues normally subject to arbitration except for issues/conditions that have been disclosed.
Red		Vehicles is being sold “As Is” and arbitration is limited.
Red	Yellow	Vehicle is being sold “As Is” and disclosures have been made. Arbitration is limited.

2. Disclosures: Sellers consigning vehicles to sell at the Auction are required to disclose the information listed below. Disclosing all applicable disclosures listed below will help avoid Arbitration and promote confidence in the Seller and the Auction. The list below is not an exhaustive list. If the Seller is unsure about making disclosures, they are encouraged to contact the Auction to discuss the topic.

Disclosure	Description	Arbitration Period
ABS Issue	Seller must disclose if ABS (Anti-Lock Braking System) is damaged or not operational. Arbitration only available if repairs are over the applicable Arbitration Dollar Threshold. (see – Major Repair (below))	Regular
Accident Repair Amount	Seller must disclose a vehicle to be Accident Repaired if the total cost to fix damage caused by a single accident was $3000 or more. Accident must be disclosed regardless of how the damage was caused. If exact dollar value of the damage is known, it must be declared. If exact dollar value of the damage is not known but there is an estimate with dollar amounts, that amount should be disclosed. Any Accident Repair under the $3000 threshold, although not required, should be disclosed.	Regular
Adjacent Panels	Seller must disclose if two or more adjacent panels have been replaced on a vehicle. (if more than $3000 to replace the panels, Accident Repair Amount must also be disclosed).	Regular
Airbags	Seller must disclose if the vehicle’s airbags are missing, defective, or not operations. Arbitration only available if repairs exceed the Arbitration Dollar Threshold. (see – Major Repair (below))	Regular
Excessive Rust	Seller must disclose if the vehicle has excessive rust. The Rust is considered to be excessive if the location or the amount of rust affects the structural integrity of the vehicle.	Regular
Fire Damage	Seller must disclose if the vehicle has had any fire damage.	Extended
Smoke Damage	Seller must disclose if the vehicle has had any smoke damage.	Extended
Flood Damage	Seller must disclose if the vehicle has had any flood/water damage. The vehicle is considered to have flood/water damage when: • Water has penetrated the vehicle up to the level of the floor or higher; or • If any of the following has been damage by water: ◦ Front or rear lighting ◦ Wiring harness ◦ Transmission or differential ◦ Dash panel instruments and wiring ◦ Seating and its controls ◦ Other electrical components	Extended
Grey Market	Seller must disclose if the vehicle was ever registered in a country other than the United States or Canada in the past 36 months, or if the vehicle is not manufactured in compliance with North American standards. All Grey Market vehicles must include a Vehicle History Report.	Regular
Incorrect Vehicle Marking	Seller must disclose if any logo, badge, emblem, decal or similar markings on the vehicle do not match the make, model, series or trim of the vehicle.	Regular
Irreparable	Seller must disclose if the vehicle is not able to be repaired or made roadworthy and can only be used for parts or scrap. Vehicles can be deemed Irreparable despite not being branded and are assumed to be a Total Loss (negating the need to declare it as a Total Loss).	Extended
KMs	If the Odometer reading is accurate, the Seller must disclose the distance travelled of the vehicle as indicated on the Odometer. Arbitration is not available for minor odometer discrepancies of 3000km or 5%, whichever is less.	Extended
Major Repair	Where the cost of repair or replacement exceeds the Arbitration Dollar Threshold, the Seller must disclose if a Major Component of the vehicle is defective or not operational, or if there are any accessories that are not working (e.g. cruise control, lane assist etc.) Major Components include, but are not limited to: • Engine • Transmission • Power train • Hybrid / Electric battery • Sub-frame • Electric / Air ride suspension • Computer equipment • Fuel operating system • Electrical system • Emissions system • Anti-lock brake system • Major body / interior damage	Regular
Major Repair	Arbitration Dollar Threshold: Sale Price Dollar Threshold Under $40,000 -> $750 $40,000 and over -> 2% of vehicle sale price	Regular
Manufacturer Repurchase	Seller must disclose if the vehicle was repurchased by the manufacturer in accordance with the Canadian Motor Vehicle Arbitration Plan, or under the law of any jurisdiction including but not limited to the US Lemon Laws.	Regular
Material Variation from Production Specs	Seller must disclose if there is a material variation from the original manufacturer’s specifications.	Regular
Odometer Broken / Faulty / Unreadable	Seller must disclose if the odometer of the vehicle is broken, faulty, unreadable, or not accurately displaying the correct kilometers / mileage.	Regular
Odometer in Miles	Seller must disclose if the odometer is primarily in Miles.	Regular
Odometer Replaced	Seller must disclose if the odometer has been replaced.	Extended
Odometer Rolled Back	Seller must disclose if the odometer has been rolled back, or if they suspect the odometer has been rolled back.	Extended
Out of Province Registered Vehicle	If the Province of the vehicle’s last registration (or equivalent) is different from the Province in which the vehicle is currently being sold, the Seller must disclose the vehicle as an out of Province vehicle and the last Province that vehicle was registered in must be identified. For vehicles sold in Ontario, if the vehicle has been registered previously in another Province and has only been registered for less than 7 years in Ontario, the Seller must disclose the Province(s) or Provinces it was previously registered in.	Regular
Previous Rental	Vehicle Seller must disclose if the vehicle was previously used as a daily rental vehicle.	Regular
Previous Driving School Vehicle	Seller must disclose if the vehicle was previously used as a driving school vehicle.	Regular
Previous Emergency Vehicle	Seller must disclose if the vehicle was previously used as an emergency services vehicle.	Regular
Previous Police Vehicle	Seller must disclose if the vehicle was previously used as a police vehicle.	Regular
Previous Racing Vehicle	Seller must disclose if the vehicle was previously used as a racing vehicle	Regular
Previous Taxi / Limousine	Seller must disclose if the vehicle was previously used as a taxi or limousine.	Regular
Structural Alteration	Seller must disclose if there has been an alternation to the structure of the vehicle including but not limited to a lengthened frame, shortened frame, modified suspension, snowplow, hitch etc.	Regular
Structural Damage	Seller must disclose if a vehicle has sustained any structural damage. Although not in every case, Structural Damage would in most circumstances render a vehicle a total loss and attach a Salvage brand to the vehicle’s title.	Extended
Theft Recovery	Seller must disclose if a vehicle was recovered after being reported stolen. Seller also responsible for disclosing if any GPS system or computer systems have been damage or removed.	Extended
Title Branded	Seller must disclose if the vehicle’s title has been branded in accordance with Provincial law. The specific brand of the vehicle must be disclosed and includes Salvage, Irreparable and Rebuilt.	Extended
TKU (true kilometers unknown)	Seller must disclose if the true kilometers are unknown (TKU) for a vehicle. This includes when there is no reliable source or records available to verify an odometer reading as of a certain date. (e.g. no Carfax or equivalent)	Extended
TKU as of a certain date	Seller must declare the last known distance of a vehicle as of a certain date if that information is available from a reliable source.	Extended
Total Loss	Seller must disclose if an insurer determined the vehicle to be a total loss.	Extended
U.S. Vehicle	Seller must disclose if the vehicle was ever registered in the United States or not manufactured in compliance with Canadian Standards. A Vehicle History Report is required.	Regular
VIN	Seller must disclose if the original VIN plate has been removed, altered or replaced in accordance with Provincial or Federal requirements.	Regular
Year, Make, Model, Trim	Seller must disclose the proper Year, Make, Model, and Trim of the vehicle.	Regular

ARBITRATION

1. Arbitration: The Auction offers Arbitration services to resolve disagreements between Buyers and Sellers. The process is designed to be impartial, quick and convenient for both parties. The purpose of the Arbitration process is to maintain integrity and fairness in the Auction for all parties involved.

2. Limitations on Arbitration:

Arbitration not available for…	Exceptions
Matters that were properly disclosed by the Seller and Auction.	None
Matters disclosed by a Vehicle History Report (or equivalent source) made available to the Buyer before the sale begins.	None
Vehicles sold under a “Red Light”	• Odometer… rolled back, replaced, TKU
	• Title issues
	• Existing structural damage
	• Branding issues
Matters claimed outside of the applicable arbitration period.	Auction’s discretion
Normal wear and tear.	None
Minor Odometer discrepancies of 3000 km or 5% (whichever is less).	None

Arbitration Dollar Threshold:
Sale Price	Dollar Threshold
Under $40,000	$750
$40,000 and over	2% of vehicle sale price

3. Arbitration Periods:

Period	In-Lane Buyers	Online Buyers
Regular	12:00 pm on the day following sale day.	2 business days after delivery.
Extended	7 calendar days (starting the day following the sale).	The later of 7 calendars days (starting the day following the sale)… or 2 business days following the date of vehicle delivery.

The Auction reserves the right to lengthen the Arbitration Period when, in the discretion of the Auction, it would be fair and reasonable to do so. Sellers are expected to make all known disclosures, and suspected disclosures should be brought up with the Auction. Buyers are expected to be diligent in its inspection and research of the vehicles they purchase.

4. Starting an Arbitration Claim:

Paid in Full - Arbitration may not be started until the Buyer has paid for the vehicle in full.
Contact Arbitration – Buyer may initiate a claim for Arbitration by contacting the Auction’s Arbitration department before the end of the applicable Arbitration period. A Buyer may contact the Auction’s front desk administration in order to be redirected to the Arbitration department.
Provide Information/documentation – Buyer must provide the Arbitration department with the requested information and/or documentation to arbitrate the claim properly. The Arbitration department will only collect information and/or documentation once. Arbitration may only be claimed once per vehicle.

5. Arbitration Claims for Online Buyers:

Online Buyers have an extended period to initiate and Arbitration claim.
Since the vehicles have been removed from the Auction premises when an Online Buyers initiates a claim, the Buyer is obligated:
Not to make any repairs, improvements to the vehicle.
Not to buy any parts for the vehicle or any other expenditures.
Not to drive the vehicles more than 100km.
To care for the vehicle while in the Buyer’s possession.

Any contravention of the obligations listed above will terminate the Arbitration process.

6. Investigation: The Arbitrator will review only the issues identified in the initial claim. The Arbitrator may consult with the Buyer, Seller or both to gain a better understanding of the issues being arbitrated. The Arbitrator may consult and seek advice from the Auction’s mechanics, trained inspectors or experienced Auction staff. The Arbitrator may also consult with external resources such as dealerships or specialty automotive shops. Although it is preferred to complete the investigation in a timely manner, the Arbitration department is under no time constraints.

7. Decision: After completing the investigation, the Arbitrator will decide whether the Arbitration claim is valid. If valid, both parties will be notified, and the Arbitrator may attempt to mediate to find a mutually beneficial resolution. If the claim is not valid, the Arbitrator will notify both parties and the claim will be closed.

8. Remedies: The Arbitrator has broad discretion to grant any remedy or relief that they believe to be fair and reasonable in the circumstances. The main purpose of the remedy is to ensure that aggrieved party is fairly compensated for its loss. In the circumstance where no party suffers any loss, there may not be a remedy. Possible remedies include but are not limited to:

Cancellation of the sale and refund of the purchase price.
Reimbursement of costs and/or expenses incurred.
Partial refund of the purchase price.
Repair at the Seller’s expense.
Repair with cost apportioned between the Buyer and Seller.
Other Remedies deemed appropriate.

9. Arbitration Fees and Costs: The Auction reserves the right to assess an Arbitration Fee against the Buyer and/or Seller. If the Auction incurs costs as part of the investigation, the Arbitrator will establish liability to determine which party the costs fall upon. Arbitrations that result in the cancellation of a sale will be subject to either a Seller’s fee or Buyer’s fee.

10. Finality: The decision of the Arbitrator and remedy imposed is final and binding on both the Buyer and Seller. By doing business at the Auction, both the Buyer and Seller agree to be bound by the Auction’s terms, including the Arbitration process.

11. Returning a Vehicle: If the Arbitrators decision results in the cancellation and return of the vehicle, the vehicle is not considered returned until the vehicle is received, inspected and approved by the Auction. The vehicle should be in the same condition in which it was sold.

12. Privity: Arbitration services are available to Auction Buyers and Seller only and not to their customers.

13. Legal Proceedings:

No action of legal proceedings will be commenced or prosecuted by the Buyer or Seller against the other concerning:
Any matter that is or was the subject of Arbitration unless to enforce the terms or conditions of the Arbitrator’s decision.
Any matter for which Arbitration is not available under the Auction Policies unless Arbitration is not available only because the time limit for submitting the matter to Arbitration, including any time extension, has expired.
No action or legal proceeding will be commenced or prosecuted by the Buyer or Seller against the Auction for any matter, cause or thing directly or indirectly related to the Auction’s services or failure to provide services, including but not limited to Arbitration services. Unless otherwise prohibited by law, the Buyer and the Seller release and waive all rights, remedies, claims and causes of action against the Auction from any claim or remedy whatsoever, whether known or unknown, for or by reason of using the Auction’s services or facilities including but not limited to its Arbitration services.

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