Provided with any vehicle

purchased at the Public Auction

 

Arbitration Rules And Policies

VEHICLE DISCLOSURE LIST

1.     ADESA’s arbitration Services. ADESA offers an arbitration service to resolve disagreements between Buyers and Sellers. Our process is designed to be impartial, quick, and economical. The overall purpose of arbitration is to maintain the integrity and fairness of the auction process for both Buyers and Sellers of eligible Vehicles. 

2.     Eligible Vehicles.  All Vehicles are eligible for arbitration except as follows:

a.     Vehicles sold under a red light.

b.     Vehicles with over 160,000 kms.

c.   Vehicles that sell for $3,000 or less.

d.     Vehicles not intended for use on public roadways (e.g. snowmobiles, tractors, etc.)

e.     Vehicles with more than 2 axles, that weigh over 4,600 kgs, or that have air brakes.

f.     Antique vehicles, recreational vehicles, motor homes or motorcycles

3.     Starting An Arbitration Claim 

a.     Pay for items. An arbitration claim may not be started until the Buyer has paid for the Vehicle in full. 

b.    Arbitration Fee.  To start arbitration, you must pay an arbitration fee of $50.  Depending on the outcome of the arbitration, at the Arbitrator’s discretion, part of or the entire arbitration fee may be refunded.  The arbitration fee is waived if a Buyer purchases a Buyer Protection Plan post-sale inspection.

c.  Contact arbitration Department. After paying for the Vehicle, a Customer may initiate an arbitration claim by contacting the Auction’s arbitration department before the end of the arbitration period and providing the information required to complete an arbitration form.  Only those matters identified in the arbitration form will be considered by the Arbitrator.  Regular arbitration claims may be submitted only once per Vehicle sale.

d.    Arbitration Location.  For In-Lane Sales, the arbitration must be initiated at the ADESA location where the Vehicle was purchased.  For LiveBlock® Sales, the arbitration must be initiated at the ADESA location closest to the Buyer’s place of business.

4.     Arbitration Period. The arbitration period is the end of business on sale day. The Vehicle must remain on the Auction premises to be eligible for arbitration. The Auction reserves the right to lengthen the arbitration period when, in the opinion of the Auction General Manager, it would be fair and reasonable to do so.

5.     Investigation. The Arbitrator will review only issues identified in the arbitration form.  The Arbitrator may, but is not required to, consult with the Buyer, Seller or both parties to gain a better understanding of the issue(s) under arbitration.  Depending on the issue, the Arbitrator may also seek the advice of the Auction’s mechanics, trained vehicle inspectors or other experienced Auction staff.  When appropriate, the Arbitrator may refer the Vehicle to an external resource such as an authorized dealership or specialty shop for consultation.

6.     Decision. After completing the investigation, the Arbitrator will decide whether the arbitration complaint is valid.  Before deciding what the remedy should be, the Arbitrator may attempt to mediate a resolution between the Buyer and the Seller. If agreement cannot be reached, the Arbitrator will decide the appropriate remedy, if any.   

7.     Remedies.

a.     Generally.  The Arbitrator has a broad discretion to grant any remedy or relief that he/she considers to be fair and reasonable in the circumstances. The purpose of the arbitration remedy is to ensure that the Buyer is fairly compensated for its loss. In some circumstances, such as where a disclosure does not affect the value of the particular Vehicle, there may be no loss and thus no remedy.  Remedies could involve: cancellation of the sale and refund of the purchase price, reimbursement of costs and/or expenses incurred, partial refund of the purchase price, repair of defect at Seller’s expense, repair of defect with the costs apportioned between the Buyer and the Seller, no financial or other compensation, or similar remedies. 

b.     Limitation for LiveBlock® Sales. LiveBlock® Buyers require a post-sale Buyer Protection Plan inspection to be eligible for full arbitration remedies.  In the absence of a Buyer Protection Plan inspection, if the Arbitrator determines that the sale should be cancelled, (except for Seller’s Major Deception) the online Buyer’s remedy will be limited to the purchase price of the Vehicle.  All other expenses incurred by the Buyer including, without limitation, transportation expenses, mechanical repair expenses and reconditioning expenses will not be recoverable. 

8.     Arbitration Costs. The Auction reserves the right to assess an additional arbitration charge against the Buyer and/or Seller for Major Deception, or arbitration claims not made in good faith. If the Auction incurs costs as part of its investigation (e.g. inspection by Auction or external mechanic, referral to an external resource, towing, transportation, etc) the Arbitrator, as part of the remedy imposed, will determine liability to pay the costs incurred. 

9.     Finality. The decision of the Arbitrator and the remedy imposed is final and binding on the Buyer and Seller.  By consigning a Vehicle for sale or buying a Vehicle using our services, the Buyer and Seller agree to participate in the Auction’s arbitration process and to observe, perform and be bound by the decision of the Arbitrator. Upon fulfilling the Arbitrator’s decision, the Buyer and Seller are deemed to release each other from all claims and demands in respect of the matters referred to arbitration.

10.   Return Process.  If, after a Vehicle has left the Auction, the Arbitrator determines that the sale should be cancelled the Buyer must return the Vehicle to the closest ADESA location.  A Vehicle is not considered returned until it is received, inspected and approved for return by Auction management.  A returned Vehicle must be in the same or better condition as when it was sold.  An excess kilometres fee may be assessed against the Buyer for returned Vehicles.

11.   Limitations on the Availability of Arbitration.  Arbitration is not available for the following:

a.     Matters that were properly disclosed.

b.    Matters disclosed in a Vehicle History Report, Condition Report or similar source made available by the Seller to an Online Buyer before the bidding begins.

c.   Noise or conditions inherent to or typical of a particular Vehicle make or model unless deemed “excessive” by the Arbitrator.  The Arbitrator may refer to OEM dealer warranty guidelines to determine whether the noise or condition is excessive in the circumstances.

d.     Wearable parts that are normally expected to be replaced or adjusted during the expected life of the Vehicle, including but not limited to tires, wipers, brake pads, brake shoes, rotors, belts, hoses, lubricants, fluids, timing belts, bulbs, filters, shocks and struts. 

12.   Legal Proceedings. No action or legal proceedings will be commenced or prosecuted by the Buyer or the Seller against the other concerning:

a.     Any matter that is or was the subject of Arbitration unless to enforce the terms or conditions of the Arbitrator’s decision; and

b.     Any matter for which Arbitration is not available under the ADESA Policies unless Arbitration is not available because and only because the time limit for submitting the matter to Arbitration including any extension of the time period has expired.

13.   Please Note. The Arbitration process is not a tool for price reduction or for dealing with “Buyer’s remorse”.  Buyers are cautioned to avoid impulse buying and to inspect Vehicles thoroughly before bidding.  All used Vehicles generally have flaws and may require repairs. Buyers should allow for this in their bidding. Arbitrations are regularly monitored by the Auction. Sellers who repeatedly fail to properly represent their Vehicles or Buyers, who repeatedly submit questionable Arbitration claims, may have their Auction privileges temporarily or permanently suspended.