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INTRODUCTION
We would like to welcome you to Southern California's newest auction facility; ADESA Los Angeles Auto Auction (ALAAA). ALAAA is an automobile auction facility, which accepts motor vehicles consigned to it and places them in an auction setting in order to promote the sale of such vehicles in a wholesale environment. Our policies and procedures from an agreement between the buyer, seller and the Auction. All buyers, sellers and there representatives who do business at the auction are deemed to have read, know, understand and are subject to and bound by these policies and procedures, as they may be amended periodically. Lack of knowledge concerning these policies and procedures will not release buyers, sellers or representatives or their obligation to abide by them. The auction reserves the right to change or amend these policies and procedures, as needed, at any time and also the right to interpret them and to decide all issues of dispute concerning same, which decision shall be final and binding.
Copies of these policies and procedures and other rules of the auction are available at the front counter, dealer registration, and arbitration office. Dealers and their representatives who do not comply with these policies and procedures and other rules of ALAAA may be barred form doing business at the auction.
ALAAA IS A WHOLESALE AUCTION FACILITY ONLY, OPEN ONLY TO LICENSED MOTOR VEHICLE DEALERS OR THEIR REPRESENTATIVES. ONLY THOSE PERSONS APPROVED TO DO BUSINESS WITH ALAAA MAY PURCHASE VEHICLES.
NO RETAIL TRANSACTIONS ARE ALLOWED TO TAKE PLACE ON AUCTION PREMISES.
ALAAA IS A PRIVATE BUSINESS FACILITY, NOT OPEN TO THE GENERAL PUBLIC.ACCESS IS BY INVITATION ONLY.
THE AUCTION RESERVES THE RIGHT TO REFUSE TO DO BUSINESS WITH ANYONE AND TO REFUSE ACCESS TO ANYONE AT ANY TIME.
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GENERAL POLICIES
The auction has not verified and makes no representation or warranties as to the Model Year, Description, Equipment, Warranties, and Odometer readings on any vehicle. The auction does not guarantee that the vehicles are in safe condition or suitable for use on public roads. The buyer assumes the responsibility to verify all such representations and descriptions.
The auction does not guarantee the year, model, or length of any vehicle. Information placed on the windshield of a vehicle, such as mileage, year, make, model, announcements etc., is for convenience and reference purposes only and is not a representation or warranty of condition of sale and are not a reason to arbitrate.
Buyers and sellers are responsible for inspecting the vehicles placed on the auction block. Vehicles are brought through the auction block in order to conduct the auction and make any announcements. The time that a vehicle is displayed on the block should not be used to conduct a complete vehicle inspection. Any comments or representations by the selling dealer concerning a vehicle shall not be deemed comments or representations by the Auction.
The auction assumes no responsibility for collision, paint damage, fire, theft, or any other damage to any vehicle before, during or after the sale. Vehicles left on the premises are left at your own risk. Vehicles gate passed on "No Sales" and not removed or vehicles left over then (10) days will be charged a storage fee of $10 per day. All tow and salvage vehicles have to be removed in seven (7) days or they will be towed. All tow or salvage vehicles left in the front parking lot over 24 hours will be towed away at the owner's expense. All vehicles are subject to search before leaving Auction property. All trunks must be opended, as you pass through the security checkpoint. ALAAA is not responsible for the mechanical condition of a vehicle transported to or from the auction.
Dealer ID cards issued by ALAAA to the dealer will remain the property of the Auction and must be surrendered upon request or when removing any authorized representative.
The Auction will not accept vehicles for sale:
1: With missing, removed or altered VIN plates (unless it has been reassigned by the proper authorities)
2: Gray market vehicles or vehicles that do not meet USA standards.
3: Vehicles without clear US title.
4: Unsafe vehicles as determined by the auction
All vehicles 10 model years or older will be sold "Miles Exempt As Is" with no odometer discloser made. This complies with Federal Truth in Mileage Act.
If any part of a sale is negotiated and or consummated on auction premises full Auction fees must be paid.
No mechanical work other then replacing a battery is allowed on Auction property.
No one will be allowed on Auction property without a current and valid driver's license.
No children under 18 years of age are allowed on the auction premises at any time.
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RULES OF APPROVAL
Only licensed motor vehicle and their authorized representatives are eligible to transact business at ADESA Los Angeles Auto Auction (ALAAA). Any dealer or representative who attempts to conduct a retail sale on Auction premises is subject to revocation of their Auction privileges.
In order to be approved by, and transact business at ALAAA one must complete and submit a dealer registration package with the following information and documents to the Dealer Registration desk:
1: A copy of your State Dealer's License.
2: A copy of your current Dealer or salesman's license.
3: A copy of your Dealer Surety Bond.
4: A copy of a current Resale permit.
5: A copy of your State Tax Certificate.
6: A copy of your current Driver's license.
7: A copy of your Social Security Card.
8: A copy of a Voided Company Check.
9: All Banking and Business references as requested.
10: A Federal tax identification number for your dealership.
11: A list of all Corporate Officers for a corporate dealership.
12: A list of all Owners or Partners of an unincorporated dealership.
ALAAA reserves the right to access any and all credit reporting agencies to obtain and verify credit history and all dealers applying authorize ALAAA to know the same. Participation at this facility is invitation only. The ALAAA can at any time and for any reason revoke a person's right to attend or participate. Upon acceptance of the ALAAA purchasing card, the person or corporation whose name is embossed theron, by retaining or using the card, agree to pay for all vehicles purchased. This obligation shall and only after payment of all purchases and surrender of the actual car to ALAAA.
ALAAA reserves the rights to cancel, modify, or change the identification card at any time and to demand the surrender of same.
If the dealership of record intends to authorize an individual to act as his/her representative at ALAAA, the dealer of record must do so in writing. When the dealer extends this authorization, he/she shall be responsible for the acts of said individuals) as till such time as the dealer informs ALAAA in writing of the cancellation of the authorization and the original auction identification purchasing card is returned to.
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SAFETY AND TRAFFIC
The auction is required to move large numbers of vehicles to and from the auction block on the day of the auction. All lanes of traffic are clearly designated and the vehicle operators are trained to move the vehicles slowly and carefully so as to create the minimum risk of possible injury. Any dealer who enters the auction lanes does so at his own risk!
1: Vehicles should be inspected before they are placed on the auction block. Vehicles are brought through the auction block and displayed for a very short period of time in order to conduct the auction and make any announcement. The time that a vehicle is displayed on the block should not be used to conduct a complete vehicle inspection.
2: Do not walk between moving vehicles that are in the lane for the auction block.
3: Listen for directions form all Auction personnel.
4: All dealers and dealer representative who attend the Auction shall be familiar with traffic patterns and shall be expected to remain clear to traffic lanes and out of harm's way at all times. Dealer representative who are not familiar with the operation of the Auction are not allowed to enter the auction premises.
5: No children under 18 years of age are not allowed on the Auction premises at any time.
It is the obligation of all consignors to see that their vehicles are safe to drive on the lot and are responsible for notifying ALAAA of all unsafe vehicles. All unsafe vehicles must be sold through a salvage sale. ALAAA reserves the right to pull any vehicle from the sale that is deemed to be unsafe. Consignors will be held responsible for any damages that may occur from an unsafe vehicle.
The sole purpose of these rules and arbitration policies are to enable everyone to transact business at this facility with confidence and predictability of results.
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LIGHT SYSTEM
The Auction does not guarantee the condition, function, safety, mileage, driveability or equipment and/or component of any vehicle sold through the auction.
The Auction utilizes a light system for vehicles offered for sale on the auction block. The color of the light indicates that the vehicle could be subject to certain arbitration rules. The light system does not constitute a guaranty or warranty by the auction.
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GREEN LIGHT
Vehicles sold under the Green Light, do not have any specially announced defects, conditions or discrepancies.
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SALE DAY ARBITRATION
If the following undisclosed and unannounced defects, conditions or discrepancies are discovered on a vehicle, sold under the green light and reported to the Auction by close of business on sale day, the vehicle will be eligible for arbitration:
1: Actual mileage of the vehicle is different that what is shown on the odometer.
2: A readily apparent defect, as determined by the auction, in the engine, or differential drive train.
a) Problems with brakes, front ends, CV joints, steering racks, clutches, electrical and fuel systems, power steering, universal, transmission or power steering leaks, throughout bearings, 4x4,SRS or ABS lights are not subject to arbitration or unwind.
b) Mechanical defects that can be repaired for $250.00 or less as determined by the auction are not subject to arbitration or unwind.
3: Computer malfunctions, if the vehicle is the current model year or one year old and has less then 50,000 miles.
4: The air conditioning does not function as a result of defects in the compressor clutch, if the vehicle is the current model year or one year old and has less then 50,000 miles.
5: The vehicle has a broken, replaced or non-functioning odometer.
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7/14-DAY ARBITRATION
If the following undisclosed and unannounced defects, conditions or discrepancies are discovered on a vehicle sold under the green light within 7 calendar days for instate buyers and 14 days for out-of-state buyers of sale, (Sale Day is DAY 1) the vehicle may be subject to arbitration:
1: The vehicle has flood, fire or frame damage (per NAAA standards).
A: Scratches, scrapes, jack or lift marks, corner tie down marks, minor upper core support damage in front of shock towers on unitized bodies and other normal wear and tear do not constitute frame damage that will be subject to arbitration.
B: Bumpers and trailer hitches welded to the frame are not considered frame damage.
2: The vehicle has an engine change or fuel conversion if it is less then 5-model years old.
3: The vehicle is a salvage title vehicle
4: Prior Canadian vehicles, unannounced.
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YELLOW LIGHT
Vehicles that are sold under a Yellow light are subject to announced defects and/or conditions as stated by the auctioneer. Buyers are cautioned to listen to all announcements. The buyer is bound to accept any vehicle that is sold under the yellow light in its announced condition and cannot subject the vehicle to arbitration because of such announced condition.
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RED LIGHT
Vehicles that are sold under the Red light are sold "AS IS". Various defects and conditions may be announced by the auctioneer, but this does not mean that there are no other unannounced defects or conditions. Buyers are cautioned to listen to all announcements. The buyer is bound to accept any vehicle that is sold under the Red light and cannot subject the vehicle to arbitration or unwind, for any reason other then unannounced conditions specified as follows:
1: Frame, fire or flood damage.
2: Being a salvage title vehicle
3: Have miles in excess of mechanical limits or true miles unknown.
4: Have a broken odometer (Sale Day Only), vehicle cannot have left facility.
5: Be a police car, taxi or kit car.
6: Have nonfunctioning or missing safety equipment such as airbags.
7: Have a missing smog control system or fuel conversion.
8: Have a Branded title.
A vehicle that is sold under the Red light has no representation or warranty concerning the existence or nonexistence of any condition or equipment.
ALL VEHICLES SELLING FOR $3,000 OR LESS ARE NOT SUBJECT TO ARBITRATION OR UNWIND FOR ANY REASON EXCLUSIVE OF TRUE MILEAGE UNKNOWN (TMU) OR SALVAGE TITLE.
ALL MOTOR HOMES, CAMPERS, TRAVEL TRAILERS, BUSES, MOTORCYCLES, OFFROAD VEHICLES AND ALL WATER CRAFT ARE AUCTIONED UNDER THE "RED LIGHT" AND ARE SOLD "AS IS" WITH ALL FAULTS AND ARE NOT SUBJECT TO ARBITRATION OR UNWIND.
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"AS IS" VEHICLE
Any vehicle(s) sold under the "red light" are sold as is without any type of mechanical guarantee of any kind. By selling a vehicle as is, the consignor makes no representation that the vehicle conforms to smog or safety standards. No guarantee is made to the frame or any other structural component.
The following list of vehicles that are deemed to be "As Is" based on their category:
A. 5 year models or older (unless specifically guaranteed by consignor).
B. A vehicle selling for $3,000 or less is sold with no arbitration exclusive of true mileage unknown (TMU) or salvage title.
C. Vehicles sold in excess of $75,000 miles (unless specifically guaranteed by consignor).
D. All frame damage, collision damage, flood damage, fire damage, kit cars, taxicabs, police cars, lemon law vehicles, and salvage or tow units, trailers, boats, motorcycles, jet skis, and motor homes.
E. All tow through vehicles are sold as is.
F. All vehicles bought off-the-block by an offer or SOS cannot be arbitrated exclusive of true miles unknown (TMU) or salvage title. Buyers are encouraged to drive and inspect all vehicles prior to making an off-the-block offer.
G. All vehicles brought in to ALAAA without proper check-in clip will be sold as is and miles over.
Only vehicles designated as current "gross polluters" prior to the sale will be subject to arbitration. Prior gross polluters once cleared with clean smog cannot be arbitrated as a gross polluter.
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SELLER'S DUTIES AND RESPONSIBILITIES
It is the responsibility of the seller to properly identify by year make and model, any vehicle that the seller brings to the auction for purposes of sale. The seller shall also disclose and announce any defect or condition of the vehicle that would adversely impact its value including, but not necessarily limited to:
1. Frame, fire or flood damage.
2. Broken or non-functioning odometer.
3. Vehicles over 100,000, 200,000, 300,000, etc., miles or true miles unknown.
4. Salvage title vehicles.
5. Vehicles that were police, taxi or kit cars.
6. Vehicles that have been lowered and/or lowered with frame damage.
7. Vehicles that were rental cars, "current model year and one year older" and/or a branded title or attachment indicating rental vehicle. The buyer must notify the auction within 7 days of the receipt of the title of a prior rental designation that was not announced.
8. Vehicles that have had engine changes or fuel conversions.
9. Vehicles that are one model year old or less, with less than 50,000 miles, that have 3 or more panels, repaired excluding bumpers.
10. Vehicles that are one model year old or less, with less than 50,000 miles, and have non-functioning air conditioning.
11. Vehicles that are five model years old or less, with less than 50,000 miles, and have defects in the engine, differential, transmission and drive train.
12. Vehicles that have had their VIN reassigned.
13. Vehicles that have non-functioning, or missing airbags.
14. Any condition or defect that would render the vehicle unsafe to drive or operate.
The seller shall also have available and provide, at time of auction, any and all necessary title documents that will enable the Auction to pass good marketable title, free and clear of all liens and encumbrances.
The Auction will accept title documents from all 50 states provided they are accompanied by documents necessary to register the vehicle in the state of California. The following documents are not acceptable for the Auction to pass title:
1. Duplicate title applications.
2. Junk or salvage bills of sale.
3. Lien documents and government sale documents, such as marshal sales, unless accompanied by a certificate of title.
4. Foreign (non-USA) documents.
5. Paperless title certificates or transfers.
If the seller does not provide the necessary title documents to pass good marketable title within 30 days from the date of sale, the Auction, at it's discretion, may cancel the sale or take the necessary steps to secure title. If the Auction incurs any expense or cost in securing title, the seller shall pay such expenses and cost.
Seller represents that he/she accurately rep ADESA Los Angeles in any and all claims.
Seller will be responsible for re-purchasing.
Seller is responsible fro the auction fees, re-run, and no sale fees.
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BUYERS RESPONSIBILITIES AND OBLIGATIONS
It shall be the responsibility of the buyer to verify and confirm the description, including year, make model and VIN of any vehicle purchased at the Auction and to verify and confirm the odometer reading and any representations, disclosures or announcements made by the seller concerning any vehicle prior to purchase of the vehicle.
The buyer shall also be responsible to thoroughly inspect the vehicle prior to and at the time of auction sale to determine if there are any undisclosed or unannounced defects, conditions or discrepancies on the vehicle. The buyer shall report to the Auction any undisclosed or unannounced defects, conditions or discrepancies that may subject the vehicle to arbitration or unwind within the times specified herein (by close of business on sale day, or within 7 (in-state) or 14 (out-of-state) days if the vehicle was sold under green or yellow light).
If the buyer fails to notify the Auction of any undisclosed or unannounced defect, condition or discrepancy within said time frames, the Auction shall be under no obligation to arbitrate or unwind the sales transaction or accept a return of the vehicle or refund or pay any money to the buyer.
Buyers are responsible to be aware of and understand the price that the auctioneer is offering for any vehicle on the auction block. Any misunderstanding concerning the price must be addressed before the auction sale is complete. Once the auctioneer has concluded the auction sale for a particular vehicle, the successful buyer is bound to pay the purchase price and any buyer fees associated with the sale. A late payment fee of $35 per day may be applied to each vehicle not paid in full on sale day.
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ARBITRATION RULES
As an accommodation to its dealer customer, the Auction provides arbitration services for disputes that may develop between dealers in connection with undisclosed defects, conditions, or discrepancies that may exist on vehicles that are sold under the green or yellow light system. Such arbitration service shall be performed at the discretion of and pursuant to the arbitration policies of the Auction. In order to enter arbitration, the buyer must give the Auction notice of the undisclosed defect, condition or discrepancy within the times specified herein
(by the close of business on sale day or within 7 (in-state) or 14 days (out-of-state) from sale day depending upon type of defect, condition or discrepancy). If the buyer fails to give such notice, the Auction shall have no duty or obligation to provide arbitration services. The buyer must be aware of the fact that certain defects, conditions or discrepancies must be readily apparent to the Auction arbitrator in order to justify arbitration that will result in an adjustment of the purchase price or possible unwind. Therefore, it is important for the buyer present vehicles to arbitration only if they have readily apparent defects, conditions or discrepancies that have not been disclosed. The Auction only, has final decisions in all Arbitration.
Both buyer and seller must submit to arbitration and be bound by the decision of the Auction arbitrator. If the seller refuses to submit to arbitration and the Auction determines that the buyer's complaint is legitimate, the Auction can, in its discretion, unwind the sales transaction and require the seller to refund the sale price, accept the return of the vehicle and pay the seller's fees and buyer's fees.
If buyer and seller agree to submit to binding arbitration by the Auction they shall both accept the Auction arbitrator's decision as final. The Auction arbitrator shall consider the evidence and information presented by both buyer and seller and shall render a decision that either (1) determines that the buyer's complaint does not have merit, (2) adjusts the sales price to account for the undisclosed defect, condition or discrepancy and reasonable documented costs and expenses that the buyer may have put into the vehicle, or (3) unwinds the sale transaction.
If the Auction arbitrator determines that the buyer's complaint does not have merit, the buyer shall be subject to a $100 arbitration fee. If the Auction arbitrator unwinds the sales transaction, the seller shall be subject to a $100 arbitration fee, reasonable documented costs and expenses (including reasonable transportation costs) that the buyer put into the vehicle as determined.
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TITLE GUARANTEE
The Auction guarantees the title of the vehicles that are sold through the Auction. The guarantee of the title warrants that title shall be marketable and free and clear of all liens and encumbrances at the time the vehicle is sold through the Auction and for a period of 4 years from the date of auction sales. The Auction's liability under this title guarantee shall never exceed the auction sale price of the vehicle and this maximum amount shall be reduced by 2% per month following the auction sale date. All liability under this title guarantee shall expire and terminate 48 months after the auction sale date.
If the buyer does not receive good marketable title documents on a vehicle purchased through the Auction within 30 days from the date of the sale, the Auction may, at its discretion and the possible request of the buyer, cancel the sale and require the buyer to return the vehicle to the Auction. The vehicle must be returned in no more than 7 days from an out-of-state buyer and within 3 days from an in-state buyer in a condition comparable to that in which it was purchased.
The buyer will be entitled to a refund of the auction sales price, the buyer's fee and reasonable transportation expenses and will also be eligible for the costs and expenses in preparing the vehicle for sale, which cannot exceed $500. All expenses must be supported by appropriate documentation and all expenses exceeding the $500 limit are NOT subject to arbitration.
THE AUCTION'S TITLE GUARNATEE DOES NOT GIVE ANY DEALER CUSTOMER OF THE AUCTION OR ANY OF THEIR TRANSFEREES OR ASSIGNEES ANY RIGHT TO CLAIM OR RECOVER ANY CONSEQUENTIAL OR GENERAL DAMAGES FOR LOSSES AND EXPENSES INCURRED OTHER THAN THE AUCTION SALE PRICE. SPECIFICALLY, THIS TITLE GUARNATEE DOES NOT GIVE ANYONE THE RIGHT TO CLAIM OR RECOVER FROM THE AUCTION COSTS OF IMPROVEMENTS OR REPAIR MADE TO A VEHICLE, EMOTIONAL DISTRESS OR PUNITIVE DAMAGES.
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OFF BLOCK "IFS" AND "OFFERS"
Vehicles must first cross the auction block before offers will be accepted by the Auction. Off block sales are not final until both buyer and seller have consummated the transaction by presenting the necessary paperwork to the Auction. All off block sales are still subject to the same sales fee and buyer's fee payable to the Auction as sales conducted bye the Auction on vehicle that cross the auction block.
An "If or Offer Sale" is acknowledged by the buyer. The buyer's offer is binding until accepted, countered or refused by the seller for a period of no more than 7 days.
411 "If Bids, Offers SOS" will be sold strictly "As Is" and are not arbitratible for any reason other than true miles unknown (TMU) or salvage title.
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METHOD OF PAYMENT
Buyers must pay for all vehicles they purchase at the Auction on the day of the sale by one of the following methods:
1. Cash.
2. Certified or cashier's check.
3. Company check, if pre-approved by Auction management.
4. Draft, if pre-approved by Auction management and subject to the following conditions: A. Must be paid following receipt by bank pursuant to terms of draft. B. Any draft charges of paying bank must be paid by buyer. C. Returned drafts will be subject to a service chare of, 1st time $150, 2nd time a $200 charge and 3rd time a $300 charge and check privileges will be revoked.
Any returned check or draft will subject the buyer to a minimum $150 service charge payable to the Auction, plus any check return fee charged by Auction's bank. A late payment fee of $35 per day may be applied to each vehicle not paid in full on sale day. Buyer will also be required to pay all expenses, including attorney's fees, connected with the collection of any unpaid items. In addition, the buyer's trading privileges at the Auction will be subject to suspension or termination.
In the event a dealer owes money to the Auction for any reason whatsoever or owes an adjustment or refund of the sales price of a vehicle that has been subject to arbitration or unwind, the Auction shall have the absolute right to deduct such amounts from any sale proceeds or other credits the dealer would otherwise be entitles to receive from the Auction to satisfy the obligation that the dealer owes. If the process does not settle the total amount due, the auction will have the right to file for reimbursement against the dealer's bond. Such obligations can include, but are not necessarily limed to:
1. Seller's fees.
2. Buyer's fees.
3. Arbitration fees.
4. Auction registration fees.
5. Bank charges or Auction service charges on returned checks or drafts.
6. Sales price adjustments on vehicles that have been subject to arbitration.
7. Refund amounts for vehicles that have been subject to unwind.
8. Fees or costs charged or incurred by the auction for transportation, storage, detail, body or mechanical or repair of vehicle that have gone through the Auction.
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