ARBITRATION POLICY EFFECTIVE DATE: In-Lane and Online April 17, 2017 - Standards - National Auto Auction Association
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Standards
ARBITRATION
POLICY
In-Lane and Online
EFFECTIVE DATE:
April 17, 2017
Standards Page 1 of 14
Arbitration Policy
Effective Date: April 17, 2017
I. General Policies: 3. Auction VIN Policies
All vehicles consigned must have a visible
1. Fair and Ethical Sale public Vehicle Identification Number (VIN)
plate attached to the vehicle by the
The sales made at an Auction are intended manufacturer or state inspector (state
to promote fair and ethical treatment to reassigned VIN only). Those vehicles having
both the Buyer and Seller. If Auction a reassigned VIN plate by the State in place
determines that the transaction is not fair of the original VIN plate must be announced
and ethical to either party, the Seller and or will be subject to sale cancellation or
the Buyer agree that Auction may cancel Buyer return. Auction reserves the right to
the sale, at its sole discretion. Federal, refuse the sale of any vehicle in which the
State, and Local laws supersede these VIN plate appears to be altered in any way.
policies where applicable.
2. Auction Role in Sale:
a. Auction makes no representations or
guarantees on any vehicle sold or
offered for sale.
b. Auction is not a party to the contract of
the sale. The sales contract is between
the Seller and Buyer only.
c. All vehicles bought or sold on the
premises must be processed through
the Auction office. Failure to do so will
result in suspension of trading privileges
at Auction.
d. Auction reserves the right to review any
audio/video documentation to verify the
accuracy of a sale.
e. Any vehicle consigned with the Auction
is subject to government inspection,
with or without prior notice, by the FBI,
State Police, National Auto Theft
Bureau, Local Police Authorities, any
other governmental agency, or quasi-
governmental agency.
Standards Page 2 of 14Arbitration Policy
Effective Date: April 17, 2017
II. Sale Light System: 3. Red Light – As-Is: Vehicles selling under
the red light will only qualify for arbitration
under the rules outlined in this policy. (As-
Auction has a standard light/video display Is dollar amount, model years, and mileage
system to describe the condition and/or are subject to local auction policy).
disclosures related to the vehicle being sold.
The system is defined as: 4. Blue Light Title Attached/Title
Unavailable/Title Absent: This light is
1. Green Light –Ride and Drive: The green used to announce that the title is not
light signals that this vehicle is guaranteed present (auction managed location) at the
under the conditions outlined in this policy time of the sale. For Auction rules regarding
by the seller. Any defects or issues requiring titles please refer to the Title Arbitration
disclosure per this policy should be Policy section. If “title
announced using the green and yellow attached/unavailable/absent” is not
lights. announced, a vehicle could be arbitrated for
no title in the absence of auction company
2. Yellow Light – Limited Guarantee: This policy.
light is an indication to the Buyer that the
Auctioneer or Selling Representative has
made announcements that qualify/clarify
the condition or equipment and limit
arbitration of this vehicle in conjunction with
the green light or when “limited guarantee”
is announced.
Announcement /Light Legend
Light Usage Recommendation
Announcements:
Green Yellow Red
Ride & Drive Only P N/A N/A
Ride & Drive with Caution P P N/A
Limited Guarantee Only N/A P N/A
As-is, No Arbitration N/A N/A P
Standards Page 3 of 14Arbitration Policy
Effective Date: April 17, 2017
III. Seller Responsibilities:
1. Seller will be held responsible for the 6. The announcement of the presence of
accuracy and completeness of all warning lights does not exempt a Seller
representations or descriptions. This from arbitration responsibilities as defined
includes handouts, catalogues, vehicle by the policy. The issue/defect found to be
markings, condition information or vehicle the cause of the light may be arbitrated
listings and verbal or written statements within the stated time period and dollar
made by Seller, Auction, Auctioneer or amount threshold according to Appendix 1.
Selling Representative at the time of sale.
This includes the condition report written by 7. The availability of a manufacturer’s
or on behalf of the seller as per the “NAAA warranty shall not affect a Buyer’s right to
Generic Condition Report Position arbitrate a vehicle. Regardless of the
Statement”. The Seller understands that warranty coverage in terms of the root
the sale light/video display is a binding cause of the complaint, an announcement
arbitration representation of vehicle may be required.
condition, and is therefore responsible for
ensuring that their vehicles sell under the 8. In the event of a successful arbitration by
correct light in the lane. the Buyer, the Seller is responsible for
reimbursement of all reasonable
2. Mileage announcements are not required for documented expenses incurred by the
vehicles that are 10 years or older and/or Buyer (excluding profit, commissions and
deemed exempt from Odometer and Title detail charges) on vehicles arbitrated for
disclosure laws unless a mileage undisclosed conditions. Reimbursements
discrepancy is known or apparent to the that qualify under these guidelines will be at
seller. The Seller may represent miles on the sole discretion of the Auction and will be
exempt vehicles; any disclosures made by limited to the reasonable and documented
the Seller and all known odometer expenses at auction (wholesale) repair cost.
discrepancies are grounds for arbitration.
9. Seller will not be paid for vehicles in
3. Title discrepancies must be announced arbitration until arbitration is settled and
including, but not limited to: not actual vehicles are sold. For arbitrations occurring
miles, salvage, theft recovery, stolen after the seller has been paid, seller is
vehicle, flood damage, Lemon Law buybacks required to promptly return the payment to
and trade assist. the auction if the transaction is voided as a
result of arbitration.
4. If a vehicle is being offered for sale by a
third party, an announcement of “3rd Party
Seller” is required. Disclosure requirements
and time limits are subject to local auction
policy.
5. Announcements are required for any
matters that relate to the safety or integrity
of the vehicle including as per the stated
dollar threshold and disclosure requirements
stated in this policy, all requirements under
local, state or federal statutes or
regulations. Announcements must be made
both verbally and disclosed on the auction
invoice/sale contract/bill of sale or
equivalent document in a physical or online
auction environment.
Standards Page 4 of 14Arbitration Policy
Effective Date: April 17, 2017
IV. Buyer Responsibilities: 6. The Buyer shall not surrender possession of
the vehicle to any claimant, except as
1. Prior to placing bids, the Buyer is responsible required by legal process, nor shall Buyer
for inspecting the vehicle, listening to and
voluntarily pay or acknowledge the validity
reviewing any verbal or written announcements
of any claim, without the prior approval of
and disclosures made by the Seller, Auction,
Auction. Time is of the essence. Any failure
Auctioneer or Selling representative. Buyers are
on the part of the Buyer, after becoming
also responsible for reviewing all pertinent
aware of said claim, to notify Auction of any
information available online, including, but not
claim in a timely manner or failure of the
limited to, announcements, disclosures,
Buyer to cooperate in defending any such
condition reports, pictures and online listings.
claim shall relieve Auction and seller of any
Buyers are also responsible for observing and
liability under this policy.
understanding the sale lights (Green,
Green/Yellow, Yellow, Red, and/or Blue), which 7. A vehicle is not considered returned until
identify various sale conditions for the vehicle. received, inspected and approved for return
Once the vehicle is sold, the Buyer must review by Auction management. Any vehicle
the Auction sales receipt or appropriate returned must be in the same or better
document to confirm the vehicle price, condition as when sold. Any vehicles
disclosures and announcements are correct delivered to and left on Auction premises
before legibly printing and signing their name or without Auction approval remain the sole
digitally/electronically signing the Auction sales responsibility of the Buyer. Buyer assumes
receipt or appropriate document. all risk of loss. Vehicle must be returned in
a timely manner consistent with Auction
2. It is strongly encouraged that a Buyer should direction.
have a Post Sale Inspection (PSI), warranty or
assurance product from the auction on vehicles 8. Vehicles with over (auction choice) miles
purchased. from when sold are not eligible for
arbitration.
3. Buyer agrees to be liable for any and all work
9. The Seller/Auction shall not be liable for any
done to a vehicle (including a vehicle purchased
vehicle sale or repairs made by the Buyer
as title attached, unavailable or absent) prior to
before the title is received by the Buyer. If
returning the vehicle to Auction except on
the title has been mailed from Auction to
vehicles arbitrated for undisclosed conditions
Buyer, Buyer may not return vehicle. If the
not detectable through vehicle inspection,
Seller presents a valid negotiable title to the
including but not limited to, not actual miles,
Auction within close of business on the next
salvage, theft recovery, stolen vehicle, flood
day (excluding weekends and auction
damage, Lemon Law buybacks and trade assist.
observed holidays) from the time that the
Buyer notifies the auction of their intent to
4. The Buyer is financially responsible for any return the vehicle, then the transaction will
pending sale and assumes all risk of loss until
stand.
arbitration is final.
5. The Buyer or Buyer’s agent (transporter or
driver) must document any damage on the gate
release prior to removing the vehicle from the
Auction or facilitation service provider’s location.
Auction or facilitation service provider and Seller
will not be responsible for any damage not
identified on the gate release once the vehicle is
removed from the location.
Standards Page 5 of 14Arbitration Policy
Effective Date: April 17, 2017
V. Title Arbitration Policy: 6. If the title problem is due to a clerical or
coding error, or incomplete documentation,
Auction shall be given reasonable time after
1. All titles submitted by Seller must be in
receiving notice to have the error corrected.
Seller’s company name on title or on a
properly executed reassignment form. The
7. Applications or other documents related to a
Seller guarantees the titles of vehicles that
duplicate title will not be accepted, unless
are sold through Auction. This guarantee of
announced as such or if allowed by the
the title warrants that the title shall be
appropriate jurisdiction.
marketable and free and clear of all liens
and encumbrances. This includes any brand
8. Where legal by municipal and/or state law,
(such as “salvage”) noted upon the current
any vehicle being offered for sale with a
or any prior certificate of title unless such
foreign (non-US) title, must be disclosed
encumbrances were announced at the time
prior to the sale by the seller. Disclosure
the vehicle is sold through Auction and for a
requirements and time limits are subject to
period of four (4) years from the date of
local auction title policy. Vehicle must be
sale. Seller’s liability under this title
legal to sell in the United States.
guarantee shall never exceed the Auction
sale price (the “maximum amount”) of the
9. Seller has up to a maximum of [see
vehicle, and this maximum amount shall be
individual Auction Company’s Title Policy
reduced by two percent (2%) per month
(Auction Choice)] calendar days for title to
following Auction sale date. All liability
be received by Auction. (Sale day is Day 1).
under this title guarantee shall expire and
After (Auction Choice) calendar day period,
terminate four (4) years after Auction sale
it is the Buyer’s option to return the vehicle
date. Auction will not be responsible for
or wait a reasonable period of time for the
any expenses incurred on vehicles returned
title. If, after 90 calendar days, Seller has
for late title.
not produced negotiable title and Buyer has
not returned the vehicle, this title guarantee
2. Seller warrants, represents and guarantees
shall not apply and Auction shall have no
possession and conveyance of a certificate
duty to produce the certificate of title to the
of title, properly executed, valid in the state
Buyer and shall have no duty to pay Seller.
where the transaction is occurring and clear
of all liens and encumbrances (except
10. Vehicles lacking a properly assigned title or
current year DMV fees in California), and
reassignment to transfer a title at time of
seller warrants and will defend the title
sale must sell “Title Attached/Title
against the claims and demands of all
Unavailable/Title Absent,” with the Blue
persons whatsoever.
light on.
3. Seller will ensure that the title must be
11. Vehicles lacking lien release or a valid repo
reassigned directly to Buyer. Any title
affidavit for a repossessed vehicle (where
assigned directly to facilitating auction will
allowed by law) must be sold “Title
not be accepted.
Attached/Title Unavailable/Title Absent,”
with the Blue light on.
4. Seller will not be paid for vehicles until a
transferable title is received.
5. Auction accepts no responsibility for non-
titled vehicles sold without title. Seller must
announce the vehicle being sold with a bill
of sale only and that there is no title to
transfer. All non-titled vehicles and
equipment will be sold “As-Is.”
Standards Page 6 of 14Arbitration Policy
Effective Date: April 17, 2017
12. In regard to defect in title, and in any 3. Required Conversion
matter relating to odometer mileage,
odometer statements, or damage disclosure a. All other vehicles imported must be
statements: Seller and Buyer agree to imported through a Registered
indemnify and hold harmless Auction from Importer. Registered Importers are
any liability, loss costs, damage or expense, required to post a bond with the U.S.
including attorney fees which may arise Department of Transportation and/or
either directly or indirectly from the sale National Highway Transportation Safety
and purchase of the consigned vehicle Administration. All vehicles imported
including but not limited to title services through a Registered Importer must
provided. have:
13. Whenever any claim is made by any person i. U.S. Safety Standard Certification
against the title of a vehicle, whether by Label that identifies the Registered
suit or otherwise, the Buyer, after becoming Importer
aware of said claim, shall immediately notify ii. Valid U.S. Title or Legal Foreign Title
Auction. This involves giving full particulars iii. Meet ALL Federal NHTSA, D.O.T.
of claim, cooperating fully in defending any and/or E.P.A. Mandated Guidelines
legal action, and in taking other steps to iv. Documentation must be provided at
minimize possible loss. any time by seller.
v. Cleared the mandated wait time.
b. All vehicles, whether imported by a
VI. Previous Canadian Manufacturer or a Registered Importer,
and/or Grey Market must show miles per hour on the
speedometer and miles traveled on the
Vehicles: odometer. Title 49, United States Code,
Chapter 327, Section 32704, allows
1. A “Previous Canadian” disclosure is required replacement odometers without a door
for any vehicle (regardless of manufacturing frame sticker if the conversion from
origin) having been registered in a Canadian kilometers to miles can be done without
province. Additional announcements may be changing the distance traveled by the
required as well due to the use in Canada vehicle; therefore, replacement of an
(i.e. Full or partial voided warranty, foreign odometer under these circumstances
title and etc.) does not have to be announced by the
Seller.
2. Any vehicle not originally built to U.S.
specifications can, under certain
circumstances, be imported through a VII. Arbitration Guidelines:
registered importer who modifies the
Vehicles that have any of the defects outlined in
vehicle to comply with U.S. equipment and
Appendix I that were not disclosed by the seller
safety regulations (DOT and NHTSA) and
or announced at the time of sale must be
then certifies it as compliant, and an
reported to Auction within the time frame noted
independent commercial importer who
below in order to be eligible for arbitration.
modifies the vehicle to comply with U.S.
Vehicles must be returned to Auction in the
emissions regulations and then certifies it as
same or better condition than when purchased
compliant. Only vehicles properly converted
with no more than (auction choice) miles.
to U.S. specifications can be sold and must
be announced as such.
Standards Page 7 of 14Arbitration Policy
Effective Date: April 17, 2017
1. Time Period: Refer to Appendix I for cannot be arbitrated for manual clutch
arbitration time periods. Sale day is Day 1. assemblies unless the defect will not allow a
Arbitration shall end at the close of business safe test drive.
as determined by each Auction on the last
calendar day in the time period. e. Wearable Items: Auction will not arbitrate
vehicles for wearable items normally worn
2. Process: Any single mechanical defect that vs excessively worn or inoperative (not
has a repair cost of $500 or more is subject inherent). For purposes of this policy
to arbitration on vehicles sold under wearable items are defined as parts of the
qualifying lights and lack of announcement vehicle that the manufacturer recognizes
by the seller per Appendix I. Each vehicle the need for replacement/adjustment during
transaction is allowed one chance at the expected life of the vehicle driven the
arbitration. The arbitrator will inspect only average miles per model year (15k). These
the defect that is on the initial arbitration items are normally identified in the Owner’s
claim. Repair costs will be determined by Manual for routine check and replacement
the auction and will reflect the auction cost and would include, but are not limited to,
to repair. If price adjustment is made and air ride suspensions, tires, wipers, brake
accepted, vehicle becomes “As-Is, No pads, shoes, rotors, belts, hoses,
Arbitration” property of the Buyer, and is lubricants/fluids, timing belts, bulbs, filters,
not subject to any further arbitration. The shocks and struts.
auction management makes the binding
decision upon both the Buyer and Seller on f. Unsafe vehicles: Auction reserves the right
all arbitration matters. to reject any vehicle that management
3. Fees: Auction reserves the right to assess judges to be unsafe.
an arbitration fee to the Buyer. If the
arbitration is valid, Auction reserves the g. Vehicles may not be arbitrated based solely
right to assess an arbitration fee to the upon information provided in Electronic
Seller in addition to any charges associated Data Vehicle Histories (EDVH) or printed
with the arbitration. EDVH reports. Auction and Seller are not
bound by information listed in EDVH.
4. Not subject to arbitration: Examples of EDVH include Carfax,
a. Vehicles exceeding 20 model years, with AutoCheck, NMVTIS, etc. The facilitating
the exception of trailers, RVs, and Auction may investigate vehicle history
watercraft, which cannot be arbitrated if based on information found in EDVH for
they exceed 10 model years. information that may impact arbitration.
b. Kit vehicles, homemade vehicles, or h. Auction is not bound by vehicle grades or
modified vehicles are sold “As-Is” and other types of scoring systems placed upon
cannot be arbitrated for odometer, the vehicle. Buyers may only arbitrate a
structural issues, warranty books, or vehicle based upon damage or defects that
model year. were present at the time of the sale of the
vehicle.
c. Inherent Conditions: No arbitration can
be based on conditions that are inherent i. Vehicles with more than (auction choice)
or typical to a particular model or miles from time of sale.
manufacturer. Manufacturer warranty
guidelines will be used where applicable
to determine whether the condition is
inherent. Additional resources can be
found on NAAA’s Standards page at
www.NAAA.com.
d. Manual Transmissions: Vehicles with
standard (full or partial shift) transmissions
Standards Page 8 of 14Arbitration Policy
National Arbitration Policy Guidelines (Appendix 1) Amended 9/5/17 Effective Date: April 17, 2017
Standards Page 9 of 14Arbitration Policy
Effective Date: April 17, 2017
VIII. Structural Damage, b. UVMS-Used Vehicle Measurement
Standard. The commercially acceptable
Alteration or Certified measurement deviation from the
vehicle’s original structural
Structural Repair or specification in order for any deviation
Replacement Policy not to be considered structural
damage.
The purpose of the NAAA Structural Damage
Policy is to define and clarify terminology c. Permanent Damage (aka “Kinked” or
associated with structural issues and to specify “Broken”)- The result of two or more
the disclosure requirements of the seller for objects striking or coming together at a
vehicles offered at NAAA affiliated auctions. significant change in velocity that
The policy is intended to provide adequate permanently deforms the structural
disclosure to the buyer for informed purchase component(s) rendering it non-
decisions and to limit arbitrations for the seller. repairable per the manufacturer.
This policy, along with the main Arbitration
Policy will serve as the primary criteria for all
arbitration proceedings. 2. Recommended Disclosures
a. Structural Damage-Damage to the
1. Definitions structure or a specific structural
a. Vehicle Structure-The main load- component of the vehicle. Often
bearing platform of a vehicle that gives referred to as frame damage, although
strength, stability and design it also applies to Unibody and Unibody
exclusivity and to which all other on Frame structures in addition to
components of the vehicle are Conventional Frame.
fastened. For purposes of this policy,
there are three macro types: b. Certified Structural
Repairs/Replacement-Repairs to a
i. Unibody - A type of structure specifically identified structural
whereby the floor pan assembly, roof component of a vehicle that has been
bows/braces, pillars, etc. are bonded certified to be within the Used Vehicle
together into one unit, thereby Measurement Standard (UVMS).
eliminating the need for a separate
conventional structure c. Structural Alteration -An alteration
to the vehicle’s structure including a
ii. Unibody on Frame-A type of lengthened or shortened frame, a
structure whereby a unitized modified suspension, or the installation
structure is bolted to a conventional or removal of after-market accessories.
structure.
iii. Conventional Structure-A type of
structure consisting of two
symmetrical rails (beams) connected
by various cross-members.
Standards Page 10 of 14Arbitration Policy
Effective Date: April 17, 2017
3. Seller Disclosure Requirements h. Corrosion of structural components
determined by one or more of the
Sellers must disclose permanent structural following; when the substrate loses its
damage, any structural alterations, structural shape, the original bonds near the
repairs or replacements (certified or non- affected area are loose or are no
certified) as outlined in this policy prior to longer in existence, the original
selling a vehicle at auction regardless of sales thickness of the substrate has been
channel or light condition. Disclosures are changed by more than 25%, the
required for the following: affected area no longer possesses its
absorption or deflection properties.
a. Any/all existing permanent (non-
repairable aka kinked or broken) i. Structural tear damage (i.e. transport
structural damage as defined in this tie down) if more than 1" in length
policy (measured from tear start/stop points)
b. Improper and/or substandard prior j. Damage due to improper jacking or
repairs (not meeting OEM repair lifting that permanently deforms
guidelines) structural components outlined in this
policy.
c. Repairs not certified using OEM
guidelines or to be within the UVMS k. Damage due to contact with parking
Improper alterations to the structure abutments and/or road debris that
Lengthened or Shortened structure permanently deforms structural
verified by visual inspection. components outlined in this policy.
d. Altered suspension that requires the l. Roof bows/braces that have been
structure to be modified from its OEM modified, have existing permanent
form. damage or removed. A replaced roof
skin is not a required disclosure in
e. After-market accessories installed or terms of the Structural Damage Policy.
removed to the structure.
m. The C pillar/quarter or Cab panel may
f. Towing packages installed (or or may not be a structural
removed) where new holes are drilled, component(s) as per the vehicle
OEM holes are enlarged, or if the manufacturer.
towing package is welded or brazed to
the structure.
g. 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.
Standards Page 11 of 14Arbitration Policy
Effective Date: April 17, 2017
4. Arbitration Rules for Structural responsible for the charges paid to the
Damage, Alteration, Certified facility.
Repairs or Certified Replacement
f. Visual evidence supersedes any/all
a. A vehicle may be arbitrated if it has mechanical or electronic
undisclosed existing permanent measurements.
damage alteration, Certified Repairs or
Certified Replacement, which should g. For measurements according to the
have been disclosed under this policy, UVMS, the following guidelines will
even though the vehicle is within the apply:
UVMS. If a structural issue is properly
disclosed, the vehicle may only be i. The vehicle structure must
arbitrated for improper repair of the measure to a total tolerance of no
designated area, existing permanent more than +/- 8 millimeters (mm)
damage or repairs to other areas of the of published specification of length,
vehicle not disclosed, or for failure to width and height at control points
be within the UVMS that was verified that capture the front (2), center
by visual inspection. (4) and rear (2) sections of the
vehicle.
b. Damaged or replaced radiator core
supports or rear body panels do not ii. Symmetrically (comparative
require a structural disclosure under measure from side to side and
this policy. point to point based on point
measurement), the length, width
c. Damage to the aprons, rail floor pan and height must measure to a
assembly, inner wheelhouse (upper or difference of no more than
lower), D pillar (if equipped) or other 6 mm. Upper body measurements
ancillary structural components on a (tram gauge) by themselves will
unitized structure in the area where not be adequate.
the radiator core support or rear body
panel attaches will require a disclosure h. Buyer must arbitrate any/all structural
if permanent damage exists. misrepresentations as outlined in this
policy within published timelines
d. Brazed exhaust hangers are not a (outlined in the main Arbitration Policy
required disclosure under this policy. Guidelines) from date of purchase
(purchase day counts as Day One).
e. Facilitating auction will, at its
discretion, have a vehicle measured i. The buyer must contact and follow the
according to the UVMS at a facility of arbitration process of the auction
its choice. Prior to sending the vehicle where the vehicle was purchased
for measurement, the auction reserves including the auction’s direction for
the right to complete a visual return of the vehicle and the timeframe
verification of the physical condition of allowed for the vehicle to be returned.
the vehicle to determine that it should
be measured. If the measuring facility j. In the event of improperly disclosed
determines that the vehicle is within structural damage by the seller, the
the UVMS, the buyer of the vehicle will buyer will be entitled to reimbursement
be responsible for the charges paid to in accordance with the main Arbitration
the facility. Likewise, if the measuring Policy.
facility determines that the vehicle is
not within the UVMS, the seller will be
Standards Page 12 of 14Arbitration Policy
Effective Date: April 17, 2017
Standards Page 13 of 14Arbitration Policy
Effective Date: April 17, 2017
2. Disclosure Required
IX. Flood, Damage Policy
Disclosure is required and arbitration shall
Vehicles are frequently exposed to moisture be allowed under the following conditions:
during their ordinary operation, maintenance,
and reconditioning. Occasionally, such a. The title has been correctly branded
exposure may leave residual marks or indicating flood history of the vehicle.
indicators similar to those left by exposure or
immersion of the vehicle in floodwater. In b. Any of the following components have
determining what conditions require disclosure been damaged due to stream, pond,
or in arbitrating vehicles for flood puddle or floodwater
exposure/damage it is critical that the total immersion/ingress:
condition of the vehicle be considered including
VIN data history. Disclosure requirements can i. Front or rear internal lighting or
be found in Appendix I. wiring harnesses
ii. Engine and its major components
1. Disclosure Not Required iii. Transmission and differential
iv. Dash instrument panel and wiring
No disclosure is required nor is arbitration v. Passenger seat cushions
allowed for the following types of water vi. Power seat functions or window
exposure, provided that none of the motor
components outlined below are damaged: vii. Major sound system components
a. Rain, snow or sleet due to open
windows, doors or tops or leaking
seals.
b. Car wash or rinse water.
c. Carpet or upholstery shampooing or
cleaning.
d. Stream, pond, puddle or floodwater
that does not rise above the rocker
panel or otherwise enter the passenger
compartment.
e. Stream, pond, puddle or floodwater
that enters the luggage compartment,
but does not damage any electrical
components (such as lighting or wiring
harness) or does not enter the
passenger compartment.
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