TCAA Arbitration & General Policy and Procedures In-Lane and Online Updated May 4, 2017
General Policies i. Fair and Ethical Sales 1. The sales made at a TCAA either online or in-lane are intended to promote fair and ethical treatment to both Buyers and Sellers. If TCAA determines that the transaction is not fair and ethical to either of these parties, they both agree that TCAA can cancel the sale, at its sole discretion. Federal, State, and Local laws supersede these policies where applicable. manufacturer or state inspector (state reassigned VIN only). Those vehicles having a reassigned VIN plate by the State in place of the original VIN plate must be announced or will be subject to sale cancellation or Buyer return. TCAA reserves the right to refuse the sale of any vehicle in which the VIN plate appears to be altered in any way. 2) Sale Light System TCAA has a standard light/video display system ii. TCAA Role in Sale 1. TCAA makes no representations or guarantees on any vehicle sold or offered for sale. 2. TCAA is not a party to the contract of the sale. The sales contract is between the Seller and the Buyer only. 3. All vehicles bought or sold on the premises must be processed through TCAA. Failure to do so will result in the suspension of trading privileges at TCAA. to describe the condition and/or disclosures related to the vehicle being sold. The TCAA system is defined as: i. Red Light As-Is 1. Vehicles selling under our red light condition will not be eligible for arbitration, no matter the dollar amount, model year, mileage, and frame/uni-body damage. 4. TCAA reserves the right to review any audio/video footage to verify the sale. 5. Any vehicle bought, sold, or traded through TCAA is subject to government inspection, with or without prior notice, by the FBI, State Police, National Auto Theft Bureau, Local Police, or any United States governmental agency. iii. Auction VIN Policies 1. All vehicles bought, sold, or traded through TCAA must have a visible public Vehicle Identification Number (VIN) plate attached to the vehicle by the ii. Yellow Light - Caution or Change 1. Vehicles sold under the yellow light condition are being sold with caution or change to vehicle status. Buyer is responsible for listening to ALL announcements for a yellow light condition sale. There will be limited arbitration under yellow light conditions. iii. Green Light - Ride and Drive 1. Vehicles sold under green light conditions may be arbitrated with exceptions for announcements made prior to the sale if the bid price is over $2500. Any
defects or issues requiring disclosure per this policy should be announced in conjunction with the yellow light policy. were As-Is. viii. A manufacturer's warranty may or may not exist on a vehicle this is irrelevant to transferring ownership through TCAA. iv. Blue Light - Title Attached, Absent, Unavailable ix. All units (boats, ATV's, tractors, etc) other than vehicles sell As-Is. 1. Vehicles sold under blue light condition are announced prior to sale as title attached, absent, or unavailable. For TCAA rules for title arbitration see Title x. You, as the Seller, represent your vehicle. You are responsible for ensuring all odometer, year, model, and any other pertinent information is announced. Arbitration in this policy. xi. TCAA will refuse service to any dealer found selling outside 3) Seller Responsibilities i. TCAA expects all sellers to represent units honestly. ii. All frames, flood, hail damage, broken odometer, previous salvage, rebuilt, taxi, police, no air bag, MUST BE ANNOUNCED. Sellers are liable for vehicles with tampered odometer, whether directly or indirectly involved. the sales floor and bypassing the auction, while attending sales. 4) Buyers Responsibilities i. Prior to bidding, the Buyer online or in-lane is responsible for inspecting the vehicle, listening to ALL announcements and disclosures made by the seller, Auction, and Auctioneer. iii. Dealers if in 30 days a title is NOT produced on a title attached transaction, the buyer is entitled to a refund for purchase price only. IF a vehicle is returned for misrepresentation and no title, Seller is responsible for Buyers are responsible for observation of light status during the sale (Green, Yellow, Red, Blue, etc.) Once the buyer has won the sale they should check the sales receipt to confirm selling price, disclosures and announcements. both buy and sell fees. iv. TCAA is not responsible for antifreeze and other fluids this is the Seller's before and Buyer's after the sale responsibilities. v. ABSOLUTELTY no vehicle will sell without a legal VIN plate. ii. iii. Online buyers are encouraged to take advantage of Post Sale Inspections (PSI) product available through TCAA for eligible vehicles. TCAA will not arbitrate vehicles based on any unintentional information errors or omissions of any promotional information related to the vehicle, walk-around, handouts, vi. vii. Those units sold As-Is, from, flood or uni-body damage, cannot be rejected for a defect. The sale has been made. Rebuilt vehicles may not be returned for frame or uni-body catalogs, vehicle markings, or vehicle listings as they are for the convenience of the buyer and are not to be relied upon as accurate or complete. damage, mileage discrepancies, air bags these are and iv. Buyer agrees to be liable for all work done to a vehicle
(including Blue Light ) prior to returning the vehicle to TCAA, with the exception of arbitrated vehicles with undisclosed conditions not detectable through inspection. v. Buyer will be financially liable for any pending sale and takes on all risk until arbitration is completed. vi. Buyer or Buyer's Agent should note any/all damages on the gate release prior to removing the vehicles from TCAA properties. TCAA and/or Seller will not be responsible for any obvious damage not identified on the gate release once a vehicle has been removed from the property. vii. The Buyer shall not surrender possession of the vehicle to any claimant, except where applicable to legal processes. Buyer is not to pay or acknowledge the validity of a claim, without approval from TCAA. Failure to notify TCAA of a claim in a timely manner or failure of the Buyer to cooperate in defending a claim shall relieve TCAA and the Seller of liability under this policy. viii. A vehicle is not considered returned until received, inspected and approved for return by TCAA. Vehicles must be returned in the same or better conditions as when it was sold. All vehicles left on TCAA properties without prior approval remain the responsibility of the Buyer who assumes all risk of loss or damage. Vehicles approved for return must be done in a timely manner. ix. A fee of $(TCAA choice) per mile for excessive mileage change on a return at the discretion of TCAA. x. TCAA nor the Seller will be liable for any vehicle sale or repairs made by the Buyer before the title is received by the Buyer. If a title has already been mailed from TCAA to the Buyer, Buyer may not return the vehicle. If the Seller has presented a valid title to TCAA within close of business on the next day (not including observed holidays and weekends) from the time that the Buyer notifies TCAA of their intent to return a vehicle, then the purchase will stand. 5) Title Arbitration Policy i. All titles submitted by Seller must be in Seller's company name or on a properly executed reassignment form. The Seller guarantees titles of vehicles that sell through TCAA. The Seller guarantee of titles warrants that the title shall be marketable and free of standing liens and encumbrances, this would include salvage and the like noted upon the current or prior certificate unless announced at the time of sale through TCAA. TCAA will not be responsible for expenses incurred on vehicles returned for a late title. ii. Seller will represent and guarantee possession and conveyance of a title, executed properly, and valid where the transaction is occurring being free of liens and encumbrances. Seller will defend the title against claims and demands of all persons. iii. Seller will not be paid until a transferable title is received. iv. TCAA will accept no responsibility for non-titled vehicles sold without a title. Seller must announce the vehicle is being sold with a bill of sale only and there will be no title to transfer. All sales of non-titled vehicles and equipment will be done As-Is. v. IF a title problem arises due to a clerical or coding error, or incomplete documentation, TCAA will be given a reasonable time after a notice has been issued for correction.
vi. vii. Application of title or other documentation to duplicate will not be accepted. Any vehicles being offered for sale with a non-us title, must xiii. Any vehicle title announced as Rebuilt, Salvage, or Reconditioned may not be arbitrated regardless of light running status. 6) Grey Market Vehicles be disclosed prior to sale by the Seller, where legal by municipal and/or state law. viii. Seller has up to a maximum of (TCAA Choice) calendar days for a title to be received by TCAA. Sale day is Day 1. After said determined date it is the Buyer's option to return the vehicle or wait a reasonable period of time for the title. If a title has not been produced after 90 calendar days from the Seller, and the Buyer has not yet returned the vehicle, the title guarantee will not apply. TCAA will no longer have duty to produce title to the Buyer and will have no duty to pay the Seller, after 90 calendar days. ix. Vehicles without properly assigned titles must be run as Blue Light according to terms set in this policy. x. Vehicles lacking correct and executed lien releases or valid repossession affidavit will be sold as Blue Light according to the terms of this policy. i. Eligible Vehicles 1. Any vehicles not built to U.S. Specifications can be imported through registered importers who modify said vehicle to meet U.S specifications. Only vehicles converted to U.S. Specifications can be sold but must be announced during at sale. ii. Seller Responsibilities 1. Seller must inform TCAA of a vehicle that has a grey market history at time of registration and provide documentation supporting status to Buyer and/or TCAA. iii. Proper Conversion 1. For vehicles manufactured in Canada meant for the Canadian roadways, the manufacturer is required to obtain a U.S. Safety Standard Certification Label to xi. xii. In cases of title defect, and all matters relating to odometer mileage, odometer statements, or disclosure statements: Seller and Buyer will hold TCAA harmless for any liability, loss costs, damage, expense, and attorney fees which may come from the sale of vehicles. When a claim has been made by any entity against the title of a vehicle, the Buyer, after becoming aware of said claim, shall notify TCAA immediately. This would involve full disclosure of particulars of the claim, cooperating with any legal actions, and steps to minimize possible loss. the vehicle. 2. Any other imported vehicles must be done through a registered importer, who are required to post a bond with the U.S. Department of Transportation. 3. Any vehicle, brought to the U.S. Must show miles per hour and miles traveled on the speedometer or odometer respectively. If an instrument cluster replacement was need to comply, this must be announced at sale prior and time of auction. 7) Arbitration Guidelines
Vehicles that have any defects outlined in this policy that were not announced at the time of sale must be reported to TCAA within the time frame noted below in order to be eligible for arbitration. The ONLY exception to this would be is if a Post Sale Inspection (PSI) was purchased. See TCAA's PSI policy for further details in regards to arbitration with a PSI. Vehicles must be returned to TCAA in the same or better condition than when purchased. i. Time Period 1. Exception time periods, for units diagnosed by the Arbitrator as having odometer discrepancies, undisclosed salvage histories, from or flood damage, must be reported day of the sale. VI. Jeep rear-ends are not arbitratable. Visible defects, electrical equipment, check engine lights are not arbitratable. VII. The bid price not including the buyer fee determines the arbitration policy. 2. Repair costs will be determined by TCAA and reflect TCAA's cost to repair. If a price adjustment is made and then accepted, vehicle will become from that point forward known as an As-Is No Arbitration vehicle and becomes fully responsible to the Buyer. TCAA makes binding decisions upon both the Buyer and the Seller on all arbitration decisions. iii. Fees ii. Process 1. TCAA reserves the right to assess an arbitration fee to 1. Mechanical defects that have a repair cost greater that the Buyer. If the arbitration is a valid complaint, $500 are subject to arbitration on these qualifying TCAA reserves the right to pass this fee to the Seller vehicles; along with charges associated with the arbitration. I. Vehicles must have been sold under the Green iv. Not Arbitratable Light and sold for greater than $2500 I. Vehicles selling for less than $2500 are not II. Must be found to have a mechanical defect over subject to Arbitration. $500 repair cost; individually (as accessed by the II. Airbag lights must be announced, if not the Arbitrator and TCAA) vehicle can be turned down. III. Vehicles selling for less than $2500 are not III. Jeep rear-ends are not arbitratable. subject to Arbitration. IV. Air Conditioners older than current model year IV. Airbag lights must be announced, if not the are not arbitratable. vehicle can be turned down. V. Air Conditioners older than current model year V. Visible defects, electrical equipment, check engine lights are not arbitratable. are not arbitratable. VI. Noise and Inherent Conditions. No arbitration
can be based on noise or conditions that are inherent or typical to a particular make, make or manufacturer, unless deemed excessive by the Arbitrator or TCAA. VII. All Diesel engine powered vehicles with altered emissions system must be announced As-Is due to the removal of such items (i.e. missing muffler, catalytic converter, or EGR removal.) When announced vehicles will NOT be arbitratable. (Misrepresentation by Selling party may be a finable offense due to Federal EPA Laws and Standards.) VIII. Manual Transmissions: Vehicles with standard IX. transmissions cannot be arbitrated for manual clutches unless the defect will not allow a safe test drive. As-Is: Any vehicles sold AS-IS is NOT subject to mechanical, electrical, or cosmetic arbitration. X. Unsafe Vehicles: TCAA reserves the right to reject any vehicle that TCAA judges to be unsafe. 8) Structural Damage, Alteration or Certified Structural Repair or Replacement Policy TCAA Structural Damage Policy is to define wording associated with structural damage and to disclosure requirements for the Seller. This policy and the remainder of the policy it is written herein will serve as qualifying criteria for all arbitration proceedings. i. Definitions 1. Vehicle Structure The main load bearing platform of a vehicle that gives strength, stability and design exclusivity to which all other components are fastened. TCAA views 3 types for these structures: I. Uni-body This structure has main components such as floor, roof, panels, etc. bonded together in one unit. II. Uni-body on Frame This structure has a lower frame which the uni-body section has been bolted. III. Conventional Frame This structure consists of two symmetrical frame rails connected with cross-members. 2. UVMS Used Vehicle Measurement Standard. I. This is the commercially accepted measurement deviation from the original vehicle specifications in order for a damage to be considered Structural Damage. ii. TCAA Recommended Disclosures 1. Structural Damage Damage to the structure or a specific structural component of the vehicle. Often refereed to as from damage, although it would also apply to all frame types. 2. Certified Structural Repairs/Replacement Repairs to a specifically identified structure component that has been certified to be within UVMS.
3. Structural Alteration An alteration to the vehicles structure including a lengthed or shortened frame, modified suspension, or installation or removal IX. by substrate loses shape, original bonds break or loosen. Structural tear damage if more than 1 in length. of aftermarket accessories. iii. Seller Disclosure Requirements 1. Seller must disclose structural damage, alterations, repairs or replacements as outlined in this policy prior to selling a vehicle at TCAA regardless of sales light condition. Disclosures are required for the following: I. All existing permanent structural damage as defined by this policy. X. Permanent damage to structural components due to improper jacking and/or lifting that deforms the structural components. XI. Permanent damage to structural components due to contact with parking abutments and/or road debris. XII. Roof bows/braces that have been modified. A replaced roof skin is not a required disclosure in terms of Structural Damage Policy. XIII. The C Pillar / Quarter or Cab Panel may or may II. Improper or substandard repairs that do not meet not be considered structural as per the vehicle OEM guidelines. manufacturer. III. Repairs that have or have not been certified iv. Arbitration Rules for Structural Damage through UVMS. IV. Altered suspension that required the frame structure to be modified from OEM standards. V. Aftermarket accessories installed on or removed from the frame structure. VI. Towing packages that have been installed or removed where holes were drilled or OEM holes were enlarged, or where the welding and or brazing has been done to the frame structure. VII. Drilled access holes greater than 1/4 in diameter are subject to disclosure, based on structural integrity. VIII. Corrosion of frame structure and it's components 1. A vehicle may be arbitrated if it has undisclosed existing damage or repairs, which would have been disclosed under this policy. If disclosed, the vehicle may only be arbitrated for improper repair of the designated area. 2. For vehicles with structural damage that is disclosed, vehicles may only be arbitrated for damages or repairs to structural components other than those that were disclosed in the original disclosure. 3. Damaged or replaced core supports or rear body panels do not require a disclosure in this policy. 4. Damage to aprons, rail floor pans, inner wheel housing, D pillars (if applicable) or other ancillary
structural components on a unitized structure in the area where the radiator core support or rear body panel attaches will require disclosure, even if a permanent damage area is discovered. 5. Exhaust hangers that have been welded/brazed or repaired will not require a disclosure. 6. TCAA, at anytime, can have a vehicle tested for UVMS compliance, OEM Standard Accuracy, and/or visual inspection for structure damage on-site or with an outside facility. In the case of using an outside facility, Buyer will pay for service rendered if the outcome of Compliance, Accuracy and/or Visual is deemed correct. Seller will pay for service rendered if the outcome of Compliance, Accuracy, and/or Visual is deemed incorrect. 7. Visual evidence can supersede any/all mechanical or electronic measures taken. 8. Buyer must arbitrate any and all structural misrepresentations outlined in this policy in accordance with TCAA timeline. Day 1 being sale day. 9. The Buyer is responsible to contacting TCAA and follow directions in regards to the return of the vehicle. 10. In the event of misrepresentation of structural damage by the Seller, the Buyer will be entitled to reimbursement in accordance to this policy. 9) Flood, Puddle or Stream Policy Vehicles are exposed to moisture during normal operating, maintenance, and reconditioning. This exposure can and may leave residue similar to vehicles exposed to floodwater. Determining what conditions require disclosure or arbitration will be determined by VIN history and/or visual confirmation. i. Disclosure Not Required 1. Damaged caused by rain, sleet, snow due to windows being left open, doors seals or top seals leaking. 2. Car wash, reconditioning or rinse water. 3. Carpet or upholstery shampooing or cleaning. 4. Water from any source that does not rise above the rocker panel or otherwise enter the passenger compartment. 5. Water from any source that enters the luggage compartment, but does not damage any electrical components, or does not enter the passenger compartment. ii. Disclosure Required 1. Title branded as a flood history vehicle. 2. Damage to any of the following components due to water from any source: I. Lighting wiring harnesses II. Engine and its major components III. Transmission and Differential IV. Instrument Panel and Wiring V. Passenger seat cushions VI. Power Seat functions or window motors VII. Major Sound System components
iii. Recommended Disclosure 1. TCAA recommends disclosure as Flood Damage. This disclosure should be made prior to sale of the vehicle. These disclosed vehicles should be run under Red Light conditions and the announcement of Flood Damage should be made at time of sale. 10) If Sale Policy The If Counter will begin working on if sales as soon as they begin to come through. i. Any questions on an If Sale should be handled only at this station. (Refer to If Screen for quick help) ii. It is TCAA Policy to have all If Sales resolved no later than 2 hours after the Auction concludes. 11) TCAA Company Policy i. Payment or Payment Arrangements must be made within 48 hours after day of sale. (ie Promise to Pay, Check, Floor Plan, etc) ii. Check Payments will be held until vehicle Title is received from the seller. iii. Additional Fees 1. In an effort to reduce delays for our customers, TCAA will charge a Title Attached Fee in the amount of $20, if a title is not received within 10 business days of the sale of the vehicle. 2. Customers will be accessed a $10.00 Fee when using floor plan companies, due to the cost of mailing services.