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Effective Date: June 1, 2025 |
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Major Component |
Description of Concern or Defect |
Announcement and Selling Light |
Arbitration Impact |
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Engine |
Upper Engine Noise |
Lower Engine Noise |
Engine Problem Yellow Light Required |
Exempts Engine from Arbitration |
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Timing Chain Issue or Noise |
Turbo Codes |
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Engine Smoking From Exhaust |
Misfire Codes |
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Check Engine Light |
Cam and Crankshaft Position Codes |
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Engine Knock or Tick |
Engine Overheating |
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Engine Wont Stay Running |
Engine Running Rough |
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Oil Leak |
Engine Misfire |
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Head Gasket Leak |
Turbo Leak |
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Undetermined Engine Problem |
Sludge |
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Other Engine Components |
Cam Phasers |
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Front or Rear Differential |
Differential Noise |
Differential Locking or Binding |
Differential Problem Yellow Light Required |
Exempts Differential from Arbitration |
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Excessive Play/ Slack in the Differential |
Differential Leak |
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Front Differential |
Rear Differential |
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Transmission |
Transmission Slipping |
Abnormal/ Hard Shifting |
Transmission Problem Yellow Light Required |
Exempts Transmission from Arbitration |
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Transmission Shudder |
Transmission Leaks |
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Acceleration Shudder |
Transmission Whining |
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Delayed/ Harsh Engagement |
Torque Converter Problem |
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Transmission Inoperable |
Reverse Not Engaging |
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Specific Gears Not Functioning |
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4X4 |
4X4 Not Engaging/ Disengaging |
Transfer Case Overheating |
4X4 System Problem Yellow Light Required |
Exempts 4X4 from Arbitration |
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HUB Locking Problem |
Binding In 4 x 4 |
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4X4 & 4WD Warning Light |
Transfer Case Leaking |
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Emissions |
O2 Sensor Codes |
Failed/Inoperable Catalytic Converter |
Emissions Problem Yellow Light Required |
Exempts Emissions from Arbitration |
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Catalyst System Codes |
Faulty or Damaged Mass Airflow Sensor |
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Aftermarket Modifications Affecting Emissions |
Performance Tuned Emissions Components |
Emissions Modified Yellow Light Required |
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Deleted Emissions Equipment |
Missing Catalytic Converter |
Emissions Missing Yellow Light Required |
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ADAS |
Adaptive Cruise Control Defect |
Front and/ or Rear Camera Problem |
ADAS Problem Yellow Light Required |
Exempts ADAS Systems from Arbitration |
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Collision Avoidance Malfunction |
ADAS System Warning Lights |
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Automatic Braking Systems Failure |
Backup or Parking Assist Malfunction |
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Blind Spot Detection Issue |
Lane Departure Defect |
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Collision Damage ADAS Components |
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Mechanical Alterations & Modifications |
High Performance Super Chargers |
Engine Tuners |
Aftermarket Alterations/ Modifications (by component) Yellow Light Required |
Exempts Alterations and Modifications from Arbitration |
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Performance Tuned Emissions Components |
Racing Camshafts |
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Aftermarket Turbocharger/Supercharger |
Missing Components |
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Electric or Hybrid Battery |
Battery Pack Failure |
Battery Pack Charge to 50% or Less |
As Is Red Light Recommended |
Exempts EV or Hybrid Battery from Arbitration |
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Inverter Failure |
Electric Motor |
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Regenerative Braking Motor Issues |
EV Motor Cooling System Failure |
EV/Hybrid Battery Problem Yellow Light Required |
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Hybrid or Electric Charger INOP |
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Structural Damage |
Kinked A,B and C Pillars |
Structural Tear Damage greater than 1″ |
Structural Damage Yellow Light Required |
Exempts Structural Damage from Arbitration |
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Kinked Frame Rails and Aprons |
Excessive Rust and Corrosion that compromises Structural Components |
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Cross Member Cut or Damaged |
Drilled Holes Larger than 5/8 |
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Structural/ Frame Alterations |
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Policy Reminders: Restrictive Announcements |
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Sellers choosing to make a specific or restrictive announcement related to a problem with a major component (e.g. Upper Engine Noise) remain subject to arbitration claims related to other unspecified parts or features of that component (e.g. Lower Engine Concerns). Sellers are highly recommended to consider the above announcements to prevent and/or reduce arbitration claims. |
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