1. Purpose of the Arbitration Policy


1. Transparent and Fair Resolution Process. E-Auction Autos strives to create an arbitration experience that is transparent and fair for both the Buyer and the Seller of vehicles through the E-Auction Autos platform. In the event a concern arises with regard to the vehicle condition, the Buyer and the Seller agree to resolve such concern through E-Auction Autos’s arbitration process, and E-Auction Autos agrees that it will strive to find a fair resolution to all legitimately brought concerns that are covered by this policy. In the event of any conflict between this policy and Federal, State, and Local laws, such laws shall supersede these policies where applicable.
2. E-Auction Autos’ Role in Sale of Vehicles:
   a. E-Auction Autos makes no representations or guarantees regarding any vehicle sold or offered for sale be it with or without a Condition Report generated by its users.
   b. E-Auction Autos is not a party to the sale. The sales contract, the bill of sale, and notwithstanding E-Auction Autos facilitation thereof, the title transfer is between the Seller and the Buyer only. E-Auction Autos title policy may be viewed at https://www.eauctionautos.com/title-policy.


2. How and When to Use the Arbitration Process at E-Auction Autos


1. General. If the Buyer has received a vehicle that has an undisclosed issue not mentioned in the condition report “VIR™” this item is covered for arbitration under this policy, the Buyer may notify E-Auction Autos by contacting through the E-Auction Autos application. If the Buyer is unable to access the arbitration process through the application, it may also reach out by email to arbitration@eauctionautos.com or by phone at (855) 545-0111 (choosing the arbitration option) within the designated timeframe. E-Auction Autos will investigate the claim made by the Buyer in conjunction with the condition report and determine the appropriate resolution, if any.
2. Timing. Buyer will have the greater of 10 calendar days from the date of purchase or three calendar days after the date the vehicle is delivered to the Buyer to raise concerns through the arbitration process, whichever is the least of the period, to raise any and all concerns about none described damages related to the vehicle condition. The date of purchase counts as day 1 for the purpose of calculating this timeframe. However, if the Buyer uses the transportation services recommended by E-Auction Autos, the Buyer acknowledges that it is doing so with no additional time added to the initial timeline described in this section or its subsidiaries. The Buyer may, at the time of auction, purchase an extended arbitration option for any given vehicle which would give the Buyer additional 5 calendar days, depending on the option purchased, during which to request arbitration will take into consideration as applicable to the vehicle.
3. Investigation. In order to fully investigate the claim regarding vehicle condition, E-Auction Autos may require the Buyer to provide evidence of the claim and assist in diagnosis of any condition issues within a specified timeframe, in order to determine the best resolution. This may include the Buyer:
   a. submitting photos or other evidence of the vehicle condition to E-Auction Autos within two (2) calendar days of the request,
   b. taking the vehicle to a third-party diagnosing facility designated or approved by E-Auction Autos and providing evidence of such facility’s receipt of the vehicle,
   c. permitting an E-Auction Autos vehicle inspector or third-party inspector to inspect the vehicle on the Buyer’s lot, or
   d. other potential evidence as requested.
   If the Buyer is unable or unwilling to provide the requested evidence of the vehicle condition within the timeframe requested, E-Auction Autos will close the arbitration related to such vehicle and the Buyer will not be permitted to reopen the arbitration.
4. Final Determination. E-Auction Autos makes the final binding decision upon both the Buyer and Seller on all arbitration matters.
5. Possible Resolutions to Arbitration. Resolutions to an arbitration may include payments or credits to the Buyer to cover, at E-Auction Autos determined wholesale rates, parts and labor to repair covered vehicle condition issues as set forth in this policy, the cancellation of the sale, potential resolution without further action, or other resolutions in the discretion of E-Auction Autos. E-Auction Autos may determine that payment for parts and labor expenses, at wholesale rates, associated with any arbitration claim is appropriate before the deal can be cancelled. E-Auction Autos also reserves the right to cancel a sale rather than determine that payment should be made for parts and labor expenses. In each case, the Buyer and Seller agree that E-Auction Autos will make the decision in its sole discretion.
6. One Arbitration Only. The Buyer should inspect the vehicle upon delivery and determine all issues or concerns with the vehicle and notify E-Auction Autos of all vehicle condition issues at the same time. Once an arbitration for a given vehicle has been completed and closed by E-Auction Autos, no new concerns may be raised by the buyer for arbitration related to that vehicle.
7. If Reparation is made to the Buyer. If a price adjustment is made, or a credit or repair payment is made to the Buyer, the vehicle becomes “As-Is, No Arbitration” property of the Buyer, and is not subject to any further arbitration.
8. If a Sale is Cancelled. In the event E-Auction Autos determined that cancellation of the sale is the appropriate resolution after the vehicle has been delivered to the Buyer, E-Auction Autos or the Seller, in E-Auction Autos’s discretion, will transport the vehicle to another location. The Buyer will be responsible, at its own cost, for the safety and security of the vehicle until it can be transported from the Buyer’s lot.


3. What Can Be Arbitrated (Vehicle Condition). In order for the Buyer to request arbitration and to be eligible for reparation based on the vehicle condition, each of the following criteria must be met:


1. The defect or concerning condition was not disclosed in the condition report, in a CARFAX report, or otherwise by the Seller or E-Auction Autos;
2. A single mechanical defect with a repair cost in excess of $500. The cost of the repair is determined by E-Auction Autos based on wholesale dealer cost, which means used, remanufactured, and/or aftermarket parts as well as a wholesale labor rate of $85.00 for gas vehicles and $100 for non-gas vehicles. This minimum does not apply for cosmetic damage that was not disclosed to the Buyer;
3. The defect is not included in the list of items in this policy that are not eligible for arbitration.


4. What Cannot Be Arbitrated (Vehicle Condition). The vehicle should not be brought for arbitration and will not be eligible for any reparation in the event any of the following are applicable:


1. Kit vehicles, homemade vehicles, non-factory add on parts, and modified vehicles are sold “As-Is” and cannot be arbitrated.
2. The vehicle makes noises or demonstrates conditions that are inherent or typical to a particular model or manufacturer, unless deemed “excessive” by the diagnosing dealership on non-warranty items. OEM dealer warranty guidelines will be used to determine whether the condition is excessive.
3. The issue with the vehicle is related to wearable items, regardless of repair cost. For purposes of this policy wearable items would include, but are not limited to: tires, wipers, brake pads, shoes, rotors, belts, lines & hoses, seals & gaskets (except head gaskets with an active dripping leak), lubricants/fluids, spark plugs & wires, ignition coils, timing belts, bulbs, filters, shocks & struts, suspension, exhaust and standard transmission clutches.
4. Vehicles may not be arbitrated solely on Electronic Vehicle History Data (EVHD). Examples of EDVH include CARFAX, AutoCheck, NMVTIS, etc. E-Auction Autos only verifies CARFAX reporting. However, E-Auction Autos may investigate EVHD based on information found in CARFAX for information that may impact arbitration.
5. The vehicle has more than 300 miles more than the odometer reading listed in the auction at time of sale.
6. If a disclosure is made about any component or part of a vehicle, such component or part is not able to be arbitrated.
7. E-Auction Autos will not arbitrate any installed Plow, 5th wheel hitches or towing packages.
8. Mileage cannot be arbitrated for vehicles that are 10 years or older and/or deemed exempt from odometer and title disclosure laws. Note that the Buyer may arbitrate mileage discrepancies for these vehicles where the Seller disclosure of mileage differs from the actual odometer reading.
9. Vehicle accessory electrical defects on vehicles 4 model years old or greater.


5. Seller’s Responsibilities


1. Title discrepancies must be disclosed by the Seller including, but not limited to: not actual miles, salvage, theft recovery, stolen vehicle, flood damage, gray market, replica, Lemon Law buybacks and trade assist. No vehicles are allowed to be sold through the E-Auction Autos platform related to which there is any title washing that would cause a title discrepancy to be undisclosed. The Seller will be solely and fully liable for any damages associated with title washing.
2. The Seller must be the rightful owner of the vehicle and may not sell any vehicle owned by a third party through E-Auction Autos.
3. The Seller must ensure that all vehicles listed for sale must have a public Vehicle Identification Number (VIN) plate attached to the vehicle.
4. Disclosures are required for any matters that is to be disclosed under local, state or federal statutes or regulations. Disclosures must be made by the Seller to E-Auction Autos’s utilizing the vehicle inspection report module to be included as the condition report.
5. Even if the vehicle is covered by a manufacturer’s warranty, the Seller is still responsible to disclose any known defects.
6. In the event of a successful arbitration by the Buyer, the Seller is responsible for reimbursement of the amounts determined by E-Auction Autos to cover expenses for parts and labor associated with repair of vehicles arbitrated for undisclosed conditions. In the event the transaction is cancelled based on the arbitration, the Seller will be responsible at its cost to transport the vehicle from the Buyer’s lot.
7. For arbitrations occurring after the Seller has been paid, the Seller is required to promptly return the payment to E-Auction Autos if the transaction is cancelled as a result of arbitration.
8. Sellers must disclose the following. Failure to disclose the following may result in an arbitration related to these issues and reparations being made by the Seller to the Buyer, or possible cancellation of the transaction.
   a. Permanent structural damage, any structural alterations, structural repairs or replacements (certified or non- certified).
   b. Improper and/or substandard prior repairs (not meeting OEM repair guidelines).
   c. After-market accessories installed to or removed from the structure.
   d. Towing packages installed (or removed) where new holes are drilled, manufacturer’s holes are enlarged, or if the towing package is welded or brazed to the structure.
   e. Multiple access holes (regardless of size) or singular access holes greater than 5/8". Access holes between 1/4" and 5/8" are subject to disclosure based upon location and condition of structural component.
   f. Corrosion of structural components which result in a perforation in the frame.
   g. Structural tear damage (i.e. transport tie down) if more than 1" in length (measured from tear start/stop points).
   h. Any defects or damage that are “visible” or “cosmetic” in nature.
   i. Any vehicles having a reassigned VIN plate by the State in place of the original VIN plate.
   j. The Seller must disclose accurate odometer reading, inoperative Odometer / TMU.
   k. Mechanical defects in excess of $500 per item.
   l. Vehicle accessory electrical defects in excess of $500 per item on vehicles 4 model years old or less.
   m. Vehicles not equipped with A/C.
   n. Paintwork (bumpers and brush touches not included).
   o. Voided factory warranties.
   p. Salvage vehicle, (including current title or history REPORTED BY CARFAX ONLY), previous Taxi, Livery and Emergency vehicles.
   q. Flood Damage current or history (including documented by DMV or Insurance Company).
   r. Missing Catalytic Converters.


6. Buyer’s Responsibilities


1. The Buyer will inspect the vehicle either at the Seller’s location prior to shipment or can elect to ship the vehicle by transporter of choice and immediately inspect the vehicle upon arrival at Buyer’s location. The Buyer must verify the Seller’s representations and promptly notify E-Auction Autos of any discrepancies within the time frame as stated in this policy. Buyer will verify odometer reading upon arrival at Buyer’s location. The mileage on the odometer must be the same as when the vehicle was purchased, as set forth in the bill of sale, if the Buyer wants to arbitrate related to an inoperable odometer.
2. Prior to making an offer to buy the vehicle through E-Auction Autos, the Buyer is responsible to review all condition reports, pictures, and disclosures made available by the Seller and E-Auction Autos.
3. Buyers are also responsible for observing and understanding the sale lights (Green, Green/Yellow, Red, Red/Yellow and/or Blue), which are a non-binding, subjective indicator of the various sale conditions for the vehicle.
4. If the Buyer makes any changes to the vehicle pending completion of arbitration, or before receiving title to the vehicle, the Buyer shall be liable for any and all work done to the vehicle and any result thereof. Buyer shall not sell the vehicle before it receives title to the vehicle. Neither Seller nor E-Auction Autos shall be liable for any vehicle sale or repairs made by the Buyer before the title is received by the Buyer.
5. The Buyer is financially responsible and assumes all risk of loss on the vehicle from the point of pick up (by the Buyer or its agent) or delivery (by third party transporter) until arbitration is final.
6. The Buyer or Buyer’s agent (transporter or driver) must document any damage at the time of pick-up prior to removing the vehicle from its location. E-Auction Autos and the Seller will not be responsible for any damage not identified in writing as of the time of pick-up of the vehicle once the vehicle is removed from the location.
7. The Buyer will not have any repairs performed prior to E-Auction Autos validating the claim. Cost for any repairs performed prior to validation of the claim will not be covered by arbitration.


7. BUYER EXPECTATIONS


1. E-Auction Autos suggests for the Buyer to drive the vehicle around the Seller’s lot and do a road test at safe speeds to confirm the quality of the vehicle corresponds to that was published in the Vehicle Inspection Report, and provide an on-site lot visual inspection of the vehicles listed through E-Auction Autos’s VIR platform, including exterior, interior, undercarriage and frame.
2. Additionally, a mechanical inspection should be conducted to check the engine oil and coolant, starting and running the engine, and driving the vehicle in the lot to test the functionality of the transmission by getting the transmission into first gear and reverse.
3. Although E-Auction Autos may disclose the same issue on different vehicles in different ways, if an issue is disclosed in any manner, it will not be eligible for any reparations through arbitration.
4. As a professional used car Buyer, you can expect that the cars you buy on E-Auction Autos may have some of the imperfections listed below and may need any or all of the following services performed to get them into retail-ready condition. Although we may not disclose all of these items in the condition report, it should be considered normal and reasonable for any wholesale auction purchase, and therefore, these issues are not subject for adjustment.
   a. Interior and exterior cleaning and detailing to remove dirt, dust, grime, stains, smells, pet hair, gum and food residue.
   b. Wet-sanding and buffing to remove surface level scratches and blemishes on the exterior body and paint.
   c. Seepage that is not considered an active dripping leak.
   d. Reconditioning or replacement of fogged or hazed headlights, fog lights, or tail lamps.
   e. Non-functioning proximity sensors and lane detection sensors.
   f. Repair of any and all aftermarket accessories.
   g. Removal of decals, bumper stickers, vehicle wraps, and window tint, and any subsequent paint damage that could occur from this process.
   h. Power seat functions including lumbar, heated & ventilated, memory, power tilt/telescoping steering wheel and steering wheel controls, power mirrors including defrost, and extending functions.
   i. Keys that are a combination key/fob, it may need a battery or dealer programming. Only one key that starts and unlocks the vehicle manually may be provided. Any duplicates will need to be made by the Buyer.
   j. Issues that can be remedied by utilizing existing manufacturer warranty need to be resolved through that process.


8. Light Indicator System for E-Auction Autos. E-Auction Autos’s light indicators for vehicles sold through its platform are described below. This light indicator system is used as a high-level indication of the basic condition of the car, but the Buyer is responsible for reviewing the condition reports, pictures, disclosures, and other information provided by the Seller and E-Auction Autos to accurately determine the condition of the vehicle before making a purchase decision. Please note that E-Auction Autos’s light indicator system may differ from those used by other companies or auctions, and the Buyer will not be permitted to arbitrate a vehicle solely based on the light indicator used with any given vehicle.


1. Green Light A green light indicates that the vehicle’s basic mechanical system and frame are all in proper functioning condition unless otherwise disclosed. Please note that the use of a green light indicator does not mean that the vehicle is without any defects or issues. If a defector other issue is not disclosed to the Buyer, the Buyer may request arbitration from E-Auction Autos to seek reparations related to such defect or issue pursuant to this policy.
2. Yellow Light A yellow light indicates that the vehicle has one of the defects identified below. The defect will be disclosed as part of the disclosures made to the Buyer in the condition report, pictures, or other disclosure available through E-Auction Autos’s platform. When a yellow light is present, it will be coupled with either a green light or a red light, and is intended to call the Buyer’s attention to one of the defects listed at https://www.eauctionautos.com/yellow-light.
3. Red Light A red light indicates that the vehicle is being sold AS-IS and may not be arbitrated based on its vehicle condition. In addition arbitration will not be granted to the other criteria set forth in this policy, it has undisclosed salvage title, current or prior structural damage or TMU (True Mileage Unknown).Title may be arbitrated on a red-light vehicle only if it has non-transferable or branded title, or if it has undisclosed repossession papers.
4. Blue Light A blue light indicates that a vehicle is being sold with the title absent. A transferable title does NOT accompany the vehicle, and the Seller has 30 calendar days (or in California, 45 calendar days) to provide a transferable title to E-Auction Autos.