Posted: March 7, 2015
Effective: March 7, 2015 Welcome to ACV! Our role in the automobile remarketing business is to bring buyers and sellers together in a professional, trustworthy, competitive, and open-bidding environment. In this way, true market forces can dictate the best price at which to buy or sell a vehicle. We want your buying and selling experience at ACV Auctions to be a positive one. We developed this Code of Conduct to assist both buyers and sellers to understand their rights and obligations to each other and to ACV.
We expect that all reps will abide by this Code of Conduct. The Terms of Service and Dealership Agreement trump this Code of Conduct if there is a conflict between them.
1. Auction Conduct
1.1 Our Values
We will be fair and impartial in our dealings with both buyers and sellers.
We will endeavor to create an environment that inspires confidence in the integrity of the auction process.
We will maintain records to verify bid sale prices and all fees that are charged.
We will comply with national, state, and local laws that regulate the conduct of our business.
We will make every effort to service our customers’ needs diligently, courteously, and responsibly.
1.2 Our Role
ACV is a service provider. We do not purchase or sell vehicles on our own behalf. ACV is the mutual agent of both the buyer and seller.
ACV does not take title to vehicles.
ACV coordinates the process wherein sellers are paid for their vehicles and that buyers receive good title to the vehicles they purchase.
ACV is paid a fee by both the buyer and the seller for its role.
ACV offers an arbitration service for resolving title disputes between buyers and sellers.
1.3 Your Obligations to Us and to Your Fellow Dealers
Fair Play. For the auction system to work properly, ACV, buyers, and sellers must conduct themselves with integrity. We do our part by being transparent and following our corporate values. We expect you to do your part by conducting your business at ACV fairly and honestly. We will not tolerate conduct that undermines the integrity of the auction process.
Auction Privileges. Using ACV is a privilege and not a right. ACV can temporarily or permanently suspend auction privileges at any time. Breach of this Code of Conduct could result in the suspension of your auction privileges.
User ID. User IDs are assigned to reps. The rep uses this User ID to purchase and sell vehicles on ACV. By logging in with that User ID, the rep agrees to this Code of Conduct as well as the Terms of Service and Dealership Agreement.
Compliance with Law. There are many rules, laws, and regulations that govern your business. We count on you to know and comply with all national, state, and local laws that regulate your right to purchase and sell motor vehicles including trucks, recreational vehicles, motorcycles, snowmobiles, boats, marine craft, golf carts, all-terrain vehicles, machinery, and equipment through ACV.
Courtesy. We will serve you professionally and courteously and in turn we believe that we are entitled to similar treatment from you. However, if you are not satisfied with the level of service you receive, we would like to hear from you.
Dealer Registration. Only properly registered motor vehicle dealers may buy or sell vehicles on ACV. It is therefore very important to keep your dealer registrations and permits current and to notify ACV of any changes.
No “Backyard Dealings.” You are prohibited from directly contacting a buyer or seller and completing a transaction in order to avoid paying our fees. If we discover this behavior, we will temporarily or permanently suspend your auction privileges.
1.4 Buyer’s Obligations
Know Your Purchase. This is a used vehicle auction. Most used vehicles have defects, wear and tear, and flaws. Please allow for this in your bidding. It is the buyer’s responsibility to review all the information associated with a vehicle listing. Pay special attention to any announcements listed on the vehicle. The buyer is responsible for ensuring that the vehicle meets their requirements.
Buying Mistakes. Buyers are strongly encouraged to carefully inspect vehicle descriptions prior to bidding. We are not responsible for buying mistakes. Insure Your Purchases. We do not provide insurance coverage for vehicles. You must carry your own insurance coverage.
Bidding Process. Please ensure that you understand the bidding process. Our auctions are very fast-paced. If you do not understand the bidding process, please ask us for help. Bids you place on a vehicle are binding and subject to our Terms of Service and Dealership Agreement. By placing a bid, you agree and authorize the transaction for a vehicle, even if you are outbid. For example, if a high bidder is unable to complete the transaction for a vehicle, the next highest bid will be processed. Counter-Offers. If you receive a counter-offer from the seller, you can accept or decline the counter-offer. If you decline the counter-offer or fail to respond, your original bid is still a valid bid until the auction closes.
Arbitration. When you purchase a vehicle using our Services, the sale is “as-is” and “where-is.” We will not be an arbitrator for any vehicle condition issues. We may act as an arbitrator regarding title and other paperwork issues.
Purchase Price Adjustments. ACV may adjust the purchase price or cancel the transaction in the following situations:
The odometer mileage of the vehicle at pickup is more than 100 miles of the odometer mileage in the condition report; and The seller failed to make an announcement and the announcement can be proven by the title or supporting documents.
Vehicle Recovery. The buyer is responsible to recover the vehicle at the buyer’s expense. The seller agrees to be available to enable the buyer to take possession of the vehicle. We have the right to retract payments made to the seller in order to reimburse the buyer when necessary.
Bill of Sale. A payment will be initiated from your associated account after a successful auction. ACV will provide you with a bill of sale via email. The bill of sale will have the sale date, vehicle information, buyer and seller information, shipping instructions for the title, and a copy of the .
Tendering a Bid. Our application will notify you when you have successfully tendered a bid.
Reserve Prices. Some vehicles are sold subject to a reserve price, i.e., a minimum price at which the vehicle must sell. If we do not receive any bids at or above the reserve price, the vehicle will not be sold unless the seller expressly authorizes the sale.
Title. Title to a purchased vehicle does not pass to the buyer until payment in full has been made and we actually receive the funds. Arbitration. ACV will only arbitrate title-related issues between the buyer and the seller.
1.5 Seller’s Obligations
Announcements. Announcements are matters that may affect the value of the vehicle that you are selling and must be disclosed. Announcements will be displayed in the auction listing and listed on the sale agreement. You will build confidence and goodwill by declaring all defects. You run the risk of having the sale cancelled, the purchase price reduced or other charges incurred if you fail to make the following announcements:
Odometer/True Mileage Unknown (TMU). Vehicle’s true mileage is unknown, or the vehicle has a five digit odometer.
Title Attached. Ownership registration is not available on the date of sale.
Flood, Fire, and Structural. The vehicle has suffered flood, fire, or structural damage.
Powertrain. The vehicle has major power train issues, such as differential, transmission, engine problems that would make the vehicle unacceptable for a powertrain limited warranty.
Salvage/Reconstructed. The vehicle has been damaged and/or deemed a total loss by an insurance company that paid a claim on it. Stolen/Theft Recovery. The vehicle was reported stolen and recovered.
Canadian History/Gray Market. The vehicle has a foreign history or the chain of title is unclear.
Lemon Law/Manufacturer Buyback. The vehicle was bought back by the manufacturer.
Repossession Papers. The vehicle was sold with repossession papers and may not have a title.
Title. When a seller transfers title to a sold vehicle, the seller represents that it has good title to the vehicle and that the vehicle is free of liens, charges, and encumbrances of any nature or kind whatsoever. All documents required to permit ownership to the vehicle to be transferred to the buyer must be sent within 3 days unless a title attached announcement was made, in which case the seller must send the documents within 21 days. VIN Numbers. No vehicle will be offered for sale without a visible factory identification number or government VIN replacement plates. Liability Insurance. The seller is liable for any damage to the vehicle while the vehicle remains in the seller’s possession. We do not provide insurance coverage for vehicles.
No Shilling. Price boosting (i.e., shilling) is strictly prohibited. Neither you nor any of your representatives or agents may bid on any vehicles that you listed on ACV.
We encourage buyers and sellers to work together to come to an amicable agreement. However, when all other options are exhausted, we offer an arbitration service to assist buyers and sellers in resolving title disputes respecting vehicles purchased on ACV. Arbitration is the referral of a dispute to an impartial person for final and binding determination. Our process is designed to be informal, quick, practical, and economical. Our arbitration managers are trained professionals who understand the automotive remarketing business. We will only arbitrate for paperwork or title-related issues. Here’s how our arbitration process works:
2.1 Step 1: Pay for the Vehicle. A claim will not be arbitrated until the buyer has paid for the vehicle in full. The buyer must have possession of the sales agreement for the vehicle under review.
2.2 Step 2: Contact Us. A buyer initiates arbitration by contacting ACV auctions at firstname.lastname@example.org.
2.3 Step 3: Investigation. Both the buyer and the seller will have an opportunity to explain their position. Depending on the nature of the complaint, we may, after listening to both parties, inspect the title and come to a decision without further consultation.
2.4 Step 4: Decision. After completing the investigation, we will decide whether the complaint was valid and inform both parties of the decision. The unsuccessful party will be responsible for all costs of the arbitration.
2.5 Step 5: Remedy. We may grant any remedy or relief considered to be appropriate. Remedies may include cancellation of sale and refund of the purchase price or partial rebate of purchase price.
2.6 Step 6: Finality. Our decision and the remedy imposed is final and binding on both parties. By choosing to initiate the arbitration process, the buyer and seller agree to be bound by our decision. If a seller or buyer fails or refuses to comply with our decision, the seller or buyer will be held liable for all losses, costs, and damages including legal fees and any losses on the resale of the vehicle. In addition, the seller’s auction privileges may be temporarily or permanently suspended.
2.7 Exceptions. Arbitration is not available if the buyer no longer possesses the vehicle or title. Arbitration is only available to ACV’s buyers and sellers, and not to the customers of the buyers and sellers.
2.8 Arbitration Alternatives. If arbitration is not available, the buyer’s only remedy is against the seller directly, without our involvement or intervention. The arbitration process is not a tool for price reduction or for dealing with buyer’s remorse. Buyers should avoid impulse buying and inspect vehicle listings thoroughly before bidding. All used vehicles generally require repairs and buyers should allow for this in their bidding. We regularly monitor arbitrations. Sellers who repeatedly fail to make required announcements or buyers who repeatedly submit questionable arbitration claims may have their auction privileges temporarily or permanently suspended.