Arbitration Policy (Updated January 2017)

Please Note: Due to the volume of vehicles and the resources available for inspections, the time period for reporting arbitration is now Monday at 5:00pm.
Any vehicle 2008 and older or km’s in excess of 200,000 will be sold Red Light AS IS (no arbitration) unless otherwise declared Green Light by the seller
DECLARATION EXPLANATION ARBITRATION PERIOD
1. ABS Defective The seller must disclose if the anti-lock braking system is not operational (is equipped). Arbitration is only available for repairs over $800.00. Regular
2. Accident Repair
$3000.00.
The Seller must declare a vehicle to be Accident Repaired if a vehicle history report (e.g. Car Proof, Auto Check, CARFAX, and Lease Return Questionnaire) or other industry accepted information source indicates repair for single incident damage of $3000 or more.If the dollar value of the accident is known, it must be declared.If the seller believes that a vehicle history report is incorrect, it is the Seller’s obligation to get the report corrected within the arbitration period or risk having the sale cancelled. Regular
3. Adjacent Panels Replaced The Seller must declare if two or more adjacent panels (excluding bumper panels) have been replaced on a vehicle. Please note: if the panels were replaced due to an accident, depending on the cost of repairs, it may also be necessary for the Seller to make the accident repair declaration. Regular
4. Air bags missing/defective The Seller must disclose if the vehicle’s airbags are missing or not operational. Air bag issues are subject to arbitration only if the cost of repair is over $800. Regular
5. Alternate fuel or conversion The seller must disclose if the vehicle uses propane or natural gas, or at any time had a propane or natural gas fuel system. Regular
6. Excessive Rust (Body & Frame) The Seller must disclose if the vehicle suffers from excessive rust. Rust is considered to be excessive when the location or quantity of the rust affects the structural integrity of the vehicle, e.g. the frame or sub frame of any structural component is perforated by rust or will not pass certification standards. Rusted rocker panels and cab corners must be declared with the exception of vehicles 2007 and older, unless sold under the Green Light. Extended
7. Fire Damage The Seller must disclose if the vehicle has been damaged by fire Extended
8. Flood Damage The Seller must declare a vehicle as Flood Damaged when:
1 – water or other liquid has penetrated the vehicle to the level of the floor boards or higher; or
2 – if any of the following components have been damaged due to immersion:
Front or rear lighting or wiring harnesses/ Engine and its major components / Transmission and differential / Dash instrument panel and wiring / Passenger seat cushions / Power seat or window motor / Major sound system components.
Extended
9. Grey Market The Seller must declare if the vehicle was ever registered in a country other than the United States or Canada or manufactured not in compliance with North American standards. All Grey market vehicles offered for sale must include a Car Proof Verified vehicle history report, or equivalent. Regular
10. Incident Report (optional) If the Seller has a third party vehicle history report (e.g. Car Proof, AutoChek, CARFAX) indicating accident repair of under $3000 it may be declared as an Incident Report at the option of the Seller; however, no arbitration is available. N/A
11. Incorrect Vehicle Marking The Seller must disclose if any logo, badge, decal, emblem, ornament or similar markings of the vehicle do not match the make, model or series of the vehicle. Regular
12. Irreparable Regardless of whether the title has been branded, the Seller must disclose if the vehicle is not capable of being repaired for roadworthy operation and may only be used for parts of scrap. Irreparable vehicles are assumed to also be Total Loss vehicles and thus the Total Loss declaration does not need to be made. Extended
13. Km. 3000 km. If the odometer reading is accurate, the Sell must disclose the distance the vehicle has traveled as indicated on the odometer. Minor odometer discrepancies of 3000km or 5% (whichever is less) are not subject to arbitration. Extended
14.Major Repairs The Seller must disclose if a major component of the vehicle is defective or not operational and the component would cost over $800.00 (on a non-cumulative basis) to repair or replace in accordance with standard Mitchell warranty rates.Major components include:
Engine / Transmission / Power train / Frame or Sub-frame / Suspension / Rusted rocker panels or cab corners / Computer equipment / Fuel operation system / Electrical system / Emissions system.Manual Transmissions:
Vehicles with standard transmissions cannot be arbitrated for manual clutches unless the defect will not allow a safe test drive.The following items are not subject to arbitration:
Upholstery /Glass / Hail damage / Tires / Visible body damage. Noise and Inherent Conditions: No arbitration can be based on noises or conditions that are inherent or typical to a particular model or manufacturer, unless deemed “excessive”. Engine noise such as lifter or other noise that is deemed to be normal for the age and distance traveled cannot be arbitrated.Level 1 and level 2 oil leaks are not subject to arbitration. Only a level 3 oil leak can be arbitrated if the cost of repair exceeds $800.00.
Regular
15. Material Variation from Production Specs The Seller must disclose if the vehicle varies materially from the original manufacturer’s specifications. Regular
16. Odo 5 digit The seller must disclose if the odometer is a 5 digit odometer with over 100,000 miles or kilometers. Regular
17. Odo Broken/Faulty The Seller must disclose if the odometer of the vehicle is broken or faulty, i.e. not accurately tracking distance driven. Regular
18. Odo in Miles The Seller must disclose if the odometer is in miles. Regular
19. Odo Replaced. The Seller must disclose if the odometer has been replaced. Extended
20. Odo Roll back The seller must disclose if the odometer has been rolled back. Extended
21. Odo Unreadable The Seller must declare the odometer to be unreadable if it is accurately tracking distance driven but cannot be read due to pixel damage to obtain an odometer reading, or similar reasons. Regular
22. Out of Province. If the province of the last registration (or equivalent) to a retail customer is different than the jurisdiction from which the vehicle is currently being sold, the vehicle must be declared an out of province vehicle and the Seller must identify the last province in which the vehicle was registered (or equivalent) to a retail customer.
For vehicles sold in Ontario only:
A vehicle remains an out of province vehicle and must be so declared, if it was previously registered (or equivalent) to retail customer in another province and has been registered in Ontario for less than 7 consecutive years.
The seller must declare all of the provinces in which the vehicle was previously registered.
Regular
23. Previous Daily Rental The Seller must disclose if the vehicle was previously used as a daily rental vehicle (unless the vehicle was subsequently owned by a non-dealer). Regular
24. Previous Driving School vehicle The Seller must disclose if the vehicle was previously used as a driving school vehicle. Regular
25. Previous Emergency Services vehicle The Seller must disclose if the vehicle was previously used as an emergency services vehicle. Regular
26. Previous Police vehicle. The Seller must disclose is the vehicle was previously used as a police cruiser. Regular
27. Previous Taxi/Limo The Seller must disclose if the vehicle was previously used as a taxi or a limousine. Regular
28.Stolen and Recovered The Seller must disclose if a vehicle was recovered after being reported stolen. Extended
29.Structural damage The Seller must declare a vehicle to have structural damage if it meets the definition of structural damage set out in the National Auto Auction Association’s Structural Damage Policy. See www.naaa.com Extended
30. Title Branded The Seller must disclose if the vehicle’s title has been branded in accordance with provincial or state law and must indicate the brand(s) assigned. Extended
31. TKU The seller must declare a vehicle TKU (true kilometers unknown) if the distance traveled is unknown and there are no reliable records available to verify the odometer reading as of a certain date. When a vehicle is declared TKU, the total distance that a vehicle has been driven is likely substantially higher than the reading shown on the odometer. Extended
32. TKU If the total distance driven is unknown, but based on reliable records, the distance driven as of a certain date is known, the Seller must declare the last known distance and provide the date. Extended
33. Total Loss The Seller must declare if an insurer determined the vehicle was a total loss. Extended
34.U.S. Vehicle The Seller must declare if the vehicle was ever registered in the United States or manufactured not in compliance with Canadian standards. All U.S. vehicles offered for sale must include a Car Proof Verified vehicle history report, or equivalent. Regular
35. VIN Plate issues The Seller must disclose if the original VIN plate (on the driver’s side of the dashboard) has been removed, altered or replaced. Vehicles may not be offered for sale unless the original VIN plate is in tact or has been replaced in accordance with provincial and federal regulatory requirements. Regular
36. Warranty Cancelled The Seller must disclose if the manufacturer has cancelled the warranty on the vehicle or has given notice of its intention to do so. Notice of warranty cancellation given after the date of sale is not subject to arbitration. Regular
37.Year/Make/Model/Seris The Seller must disclose the year, make, model and series (i.e. trim level) of the vehicle as indicated by means of VIN decoding. Regular

ARBITRATION PERIODS

Regular End of business Monday. For internet sales,(vehicles purchased online) Purchaser must prove date of delivery) 1 business day after delivery of the vehicle to the Buyer.
Extended 7 calendar days following the date of sale, or for internet sales, from the date of delivery to the buyer. If the Buyer was not able to discover the undisclosed declaration through inspection or a reliable third party vehicle history report, the arbitration period may be extended at the discretion of the Auction.

NAAA Recommended Structural Damage Policy

Last updated January 2017.
arbpolicy_1

Disclosure Requirement

Component Unibody Unibody on Frame Conventional Frame
1. Radiator Core Support – Including the upper and lower tie bars, center support or side baffles. None
2. Frame Rails Extensions (Ears) – On frame vehicles that area at the end of the frame rail to which the bumper, reinforcement or isolators attach. None
3. Frame Rails – Including front, center & rear rails. Existing or repaired damage, or replacement
4. Spring Pod, and Torque Box or Stabilizer Mount. N/A Existing or repaired damage, or replacement
5. Cross members – Except Bolt-Ons N/A Existing or repaired damage, or replacement
6. Apron/Upper Reinforcement Rails. Existing or repaired damage, or replacement None
7. Strut Tower. Existing or repaired damage, or replacement None
8. Cowl Panel / Firewall – excluding cowl vent panel. Existing or repaired damage, or replacement None
9. Support Pillars – “A”, “B”, “C” or “D” Pillars. Existing or repaired damage, or replacement
10. Roof. Replacement
11. Rocker Panel – Outer. Replacement None
12. Rocker Panel – Inner. Existing or repaired damage, or replacement None
13. Floor Panels. Torn and/or perforated if 1″ or more, dented if deflected more than 2″ or replacement floor panel None
14. Quarter or Cab Panel. Replacement None
15. Rear Body Panel None
  1. Sellers Disclosure Requirements – Seller must disclose structural damage, repairs or replacements as outlined in this policy prior to selling a vehicle at auction. The recommended declarations are:
    1. Structural Damage.
    2. Certified Structural Repairs – The vehicle has sustained damage to a specifically identified structural component, which has been repaired, and the vehicle has been certified to be within the Used Vehicle Measurement Standard (UVMS). The vehicle, if properly announced, may be arbitrated only for improper repair of the designated area, existing damage or repairs to other areas, or failure to be within the UVMS (see par. 3).
    3. Structural Alteration – The vehicle has an altered frame or unibody as specifically announced. The vehicle can be arbitrated only for damage or repairs to structural components other than those disclosed or in the event of improper alteration. Such a disclosure should be made for the following alterations, unless they are clearly obvious by the appearance of the vehicle.
    4. Frame lengthened, shortened, excessive rust or perforation. (If the vehicle is not certifiable by local standards)
    5. Suspension altered.
    6. After market accessories installed/removed.
  2. Seller’s Disclosure Not Required – No declaration will be required for existing insignificant damage or repair thereof. Insignificant damage is defined as:
    1. Damage due to transport tie-down if less than 1″, improper jacking or lifting or contact with parking abutments and/or road debris, provided that the vehicle is within the UVMS.
  3. Measurement of Vehicle – Selling auction will, at its discretion, have a vehicle measured at a facility of its choice. Prior to measurement a vehicle must first visually indicate a physical condition to warrant the measurement. Purchaser will agree to pay for this measurement if the vehicle is within the UVMS. Seller will be responsible for charges if the vehicle is found to be beyond the UVMS.
  4. Used Vehicle Measurement Standard – For purposes of arbitration under this policy the Used Vehicle Measurement Standard (UVMS) specifications are:
    1. The vehicle will measure to a total tolerance of no more than +/- 8mm of published specifications in length, width and height at all master control points; and
    2. Symmetrically (comparative measure from side to side and point to point) the length, width and height must measure to a tolerance of no more than 6mm. In each case the fender to door, door to door, and/or door to quarter panel gaps must indicate proper fit of the panels.
  5. Undisclosed Structural Damage or Repair – A vehicle may be arbitrated if it has undisclosed existing or repaired damage, which should have been disclosed under this policy, even though the vehicle is within the UVMS.
  6. Arbitration Period – Buyer must arbitrate improperly disclosed structural damage within 7 calendar days from date of purchase. The vehicle must be returned to the selling auction, or to an auction or facility designated by the auction within 7 calendar days of arbitration.
  7. Buyer’s Reimbursement by Seller – In the event of improperly disclosed structural damage the Seller will be responsible to reimburse the Buyer for:
    1. The actual price of the vehicle,
    2. The Buyer’s fee
    3. Measurement and arbitration fees incurred at the auction, and
    4. Reasonable transportation costs actually incurred transporting the vehicle to and from the Buyer’s dealership.
    5. Post-sale inspection fees remain the responsibility of the buyer.
This policy is a recommendation only. Its adoption by NAAA members is strictly optional.
Structural Damage Policy Clarifying Points

  1. Towing packages do not require announcement.
  2. Access holes for Paintless Dent Removal do not require announcement if ¼” or smaller. Many PDR access holes in very close proximity or access holes greater than ¼” need to be assessed on a case by case basis. Has the structural integrity of the vehicle been compromised?
  3. Damaged or replaced core supports are not subject to arbitration under this policy. Damage to the apron on a unibody in the area where the core support attaches may be subject to arbitration if significant damage or distortion has occurred. Will the unibody measure within the UVMS?
  4. Welded exhaust hangers are not subject to arbitration under this policy.
  5. Floor/trunk panels dented to a depth of 2″ or more constitute structural damage and must be disclosed. Tears in these panels that separate welds, rivets or other bonds also must be disclosed.
  6. Roofs that have been re-skinned do not require disclosure. Roofs that have been cut off or removed and repaired must be disclosed.
  7. Quarter panel, rocker panel, floor pan, etc. damage to a ladder or perimeter frame vehicle is not structural damage a does not require disclosure.
Frame Identification
Unibody Unibody on Frame Conventional Frame
  1. Strut towers will be present
  2. Rails and floor welded together
  3. No independent rail system
  4. Aprons will be present
  5. Core support typically welded to aprons
  1. Unibody bolts to frame
  2. Rails independently bolted to suspension and drive train
  3. Has aprons
  4. No strut towers
  5. Rails tend to be a thicker gauge metal (iron)
  6. Core support
  1. Body is not welded to frame
  2. Rails independently bolted to suspension and drive train
  3. No aprons
  4. No strut towers
  5. Rails tend to be a thicker gauge metal (iron)
  6. Core support is typically mounted by bolts only