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Specialty Powersports Addendum to NAAA Arbitration Policy

Updated February 13, 2015

Depending on sale channel, announced conditions, or sale price, other arbitration policies may apply. Please see:

Effective February 6, 2015, this addendum to the most recent NAAA Arbitration Policy and Manheim OVE Addendum (for online sales) applies to Manheim Specialty Sales (Boat, RV, Motorcycle and PowerSport vehicles) transactions and overrides any inconsistent terms therein for such transactions. All other transactions at Manheim, including in-lane, Simulcast and OVE transactions, continue to be governed by the NAAA Arbitration Policy and Addendums as amended from time-to-time.

Sale Light System

  1. In-lane sales have a standard light/video system that describe the condition and disclosures related to the vehicle being sold per the Sale Light System section of the most recent NAAA Arbitration Policy.
  2. OVE and Simulcast Everywhere do not operate with a sale light system. All vehicles are considered to be “Ride and Drive” unless specifically noted as “As-Is”. Vehicles selling As-Is will only qualify for arbitration under the rules outlined in the Arbitration Guidelines section of the 2013 NAAA Arbitration Policy. Any vehicle that sells for under $3,000 is considered As-Is and can only be arbitrated for conditions as outlined in Appendix I.A hereto for As-Is vehicles.

Additional Seller Responsibilities

  1. Chain of Ownership: Auction requires all Sellers to provide legal documentation as to chain of ownership and will not sell any vehicle where the chain of ownership cannot be established. Auction reserves the right to reject any vehicle from sale where the proper documentation cannot be attained.
    1. When selling a boat, the Seller is responsible for providing documentation on the VIN/HIN/Serial Number or other chain of ownership, such as U.S. Coast Guard documentation, Certificate of Origin (CO), copy of registration or title/documentation where state law requires. This arbitration policy guideline is not a certification, representation, warranty, or insurance of the boat’s condition.
    2. When selling a motor on a boat, the seller is responsible for providing documentation on the serial number on the motor or other chain of ownership; such as Certificate of Origin (CO), copy of registration or title/documentation where state law requires.
    3. When selling a trailer under a boat, the seller is responsible for providing documentation on the VIN/Serial number on the trailer or other chain of ownership; such as Certificate of Origin (CO), copy of registration or a title/documentation (for trailers 1000 lbs or heavier) or where state law requires.
    4. When selling a Recreation Vehicle (RV), the Seller is responsible for providing the year designated on the title/documentation and documentation on the VIN/Serial number or other chain of ownership such as the title/documentation. In the event that the year model reflected on the chassis VIN is not the same as the year model reflected on the title/documentation, the year model reflected on the title/documentation will be the year the unit is sold under.
    5. When selling a Motorcycle, the Seller is responsible for providing documentation on the VIN/Serial number or other chain of ownership where state law requires.
    6. When selling a PowerSports vehicle, the Seller is responsible for providing documentation on the VIN/Serial number on the trailer or other chain of ownership such as Certificate of Origin (CO), copy of registration or title/documentation where state law requires.
  2. Seller Additional Fees:
    1. Seller will be responsible for the buy fee plus reasonable transportation expenses to and from the Buyer’s dealership to Auction on vehicles returned for “no title/documentation.”
    2. Titles/documentation received after the maximum time defined in Auction Title Policy (Auction Choice) may be subject to a late title/documentation fee. All expenses to obtain title/documentation will be charged to the Seller.
  3. The Seller is required to give the Federal Odometer Mileage Statement in connection with any auction sale as required by the Motor Vehicle Information and Cost Savings Act of 1972 or any other applicable laws. Class A RV’s, over 16,000 GVW are deemed exempt from odometer disclosure only, however, they are not exempt from the other provisions of the Motor Vehicle Information and Cost Savings Act. Auction is not responsible for the accuracy of odometer readings, odometer statements, or damage disclosure statements.

Arbitration Guidelines

  1. Time Period
    Buyer must initiate any vehicle arbitration as noted in Appendices I (most recent NAAA Arbitration Policy) and I.A (Manheim Addendum to the most recent NAAA Arbitration Policy for OVE and Simulcast Everywhere) for arbitration time periods. Sale day is Day 1. Arbitration shall end at the close of business on the last calendar day in the time period.
  2. Process
    1. In-Lane: Any vehicle with an undisclosed single mechanical or electrical defect as outlined in Appendix I that has a repair cost of $1500 or more on any boat or RV or $500 or more on any Motorcycle or PowerSport vehicle is subject to arbitration on Green Light vehicles. Single defects less than these thresholds are deemed minor and not subject to arbitration. Auction will not arbitrate visible defects or announced conditions.
    2. Online: Sellers who sell to online buyers through any of the online channels and provide a condition report have the additional responsibility to disclose defects or damage that are “visible” in nature per Appendix I.A. The Seller must disclose damage (but not actual repair cost) with a cumulative auction (wholesale) repair cost in excess of $1500 or more for any boat or RV and $500 or more for any motorcycle or PowerSport vehicle. Undisclosed cumulative damage in excess of $1500 or more on any boat or RV and $500 or more on any Motorcycle or PowerSport vehicle is subject to arbitration by the Buyer due to an inadequate disclosure of damage or condition. Actual images of the listed vehicle must be used unless proper disclosure is noted by the Seller which makes it known the actual vehicle is not shown.

Appendix I.A – Addendum to NAAA Arbitration Policy Guidelines for OVE

Seller Disclosure/Announcement Requirements Manheim Addendum to 2013 Arbitration Policy for Specialty Vehicles (Boat, RV, Motorcycle, Powersport Vehicles) Disclosure/Announcement Required? Red Light As-Is Arbitration Time Periods Red Light As-Is
Major Components
Engine problem*
No
N/A
Cracked or Repaired Block*
Yes
N/A
Transmission problem*
No
N/A
4 X 4 System inoperable*
No
N/A
ABS problem*
No
N/A
Emission control equipment missing or inoperable*
No
N/A
Air conditioning problem*
No
N/A
SRS-Missing or problem with airbags*
Yes
B or C
Vehicle History Issues
Structural Damage per NAAA Structural Damage Policy
Yes
B or C
Not Actual Miles/Inoperative Odometer**
Yes
B or C
Salvage or Reconstructed/Theft Recovery/Stolen vehicles (including history)**
Yes
B or C
Insurance and/or Salvage titles (including history)**
Yes
B or C
Flood Damage (By Auction inspection)
Yes
B or C
Lemon Law/Manufacturer’s Buyback**
Yes
B or C
State-issued VIN plates (including kit vehicles)
Yes
B or C
Taxis, Livery vehicles, Police cars, Government vehicles
Yes
B or C
Previous Canadian vehicles
Yes
B or C
Grey Market Vehicles**
Yes
B or C
Vehicles being sold with no title (Bill of Sale only)
Yes
B or C
Voided Factory Warranty
No
N/A
Fuel Conversion
No
N/A
No-original Engine (excludes items replaced under manufacturer warranty) Calendar year and up to 4 years old
No
N/A
Logo or Decal Misrepresentation
Yes
A or C
Bio-Hazard Vehicles (both cleaned and contaminated) as required by law
Yes
A or C
Flood Damage history (discovered by DMV or Insurance company records)
Yes
120 Days
Other Issues
Vehicle Accessory Electrical Problems* (Calendar year and up to 4 years old)
No
N/A
Paintwork (3 panels or more) on current model year and newer (bumpers not included)
No
N/A
Vehicles not equipped with air conditioning (excludes 10 calendar years or older)
No
N/A
Vehicles being sold with a CO, MSO, or repo affidavit title (if required by state law)
Yes
7 days after receipt of title
Pending state or local DMV fees or taxes over $100 due on vehicle (if required by state)
Yes
7 days after receipt of title
Any state required damage disclosure
Yes
7 days after receipt of title
Time Period vs. Sale Channel Breakdown
“A” In-lane – Sale Day Only
“B” In-lane – 7 Calendar Days Only
“C” Online-2 calendar days within verified receipt of the vehicle from seller and/or auction not to exceed 10 calendar days from the original sale date
*Must disclose defects that are singularly $500 (Motorcycle or Powersport)/$1500 (Boat & RV) or more to repair
**These transactions may be subject to arbitration regardless of the stated time limits. Arbitration claims initiated after the stated time period will be addressed under the guidelines of the “Title Arbitration Guidelines” (Paragraph I) and subject to the referenced depreciation terms.