Terms of service
Our goal is to connect buyers and sellers through EBlock's online Auction Platform in a fair and ethical manner. EBlock is a Dealer-to-Dealer auction tool, which requires all users to hold a valid Dealer/Salesperson license in their respective province or state.
These Terms and Conditions govern your access to, and use of, the EBlock Auction Platform and its related products and services and apply to every transaction between buyer and seller facilitated by EBlock. By using or accessing the EBlock system, products or services, you, your business and your representative expressly agree to be legally bound by the Terms & Conditions set out in this document and as updated or amended from time to time. EBlock reserves the right to amend its Terms and Conditions at any time by posting the revised Terms and Conditions on the EBlock platform at www.eblock.ca.
GENERAL TERMS & DEFINITIONS
- 1.EBlock provides an online Auction Platform for wholesale automobile buyers and sellers. In addition to its online presence, EBlock provides other services such as post sale administration and settlement, vehicle transportation, vehicle inspection services and field sales and support.
- “Arbitration” - means the dispute resolution process as described in the Arbitration section of these Terms and Conditions.
- “Arbitrator” – means an individual or individuals appointed by EBlock to facilitate the resolution of Arbitration claims between Buyer and Seller.
- “Sales Resolution Agent” – an individual appointed by EBlock to assume the role of Arbitrator in the dispute resolution process and work towards a final and binding resolution.
- “Buyer” - means a Customer who offers to bid, offers to purchase or purchases a Vehicle or other asset through the EBlock platform.
- “Condition Report” - means a report provided by the Seller documenting the condition of a Vehicle whereas any specific required disclosures are made available to prospective Buyers. The Condition Report must follow the Arbitration policies and disclosure requirements of these Terms and Conditions and must give the Buyer a reasonable understanding as to the true Condition of the Vehicle offered for sale.
- “Customer” - means any person or business using or accessing the EBlock Auction Platform. All users must hold a valid Dealer/Salesman license, be authorized to represent their dealership and have an assigned user name and password.
- “Disclosure” – means the provision of details regarding material facts, defects or damages of a specific Vehicle as documented in a Vehicle Condition Report. Required Disclosures are set forth in the Arbitration Policy.
- “Material Fact” – means any fact about a Vehicle that, if disclosed, could reasonably be expected to influence the decision of a reasonable purchaser and/or would significantly affect the value of a Vehicle.
- “Fees” - means charges applied to Customer accounts for use of, and access to, the EBlock Auction Platform and for services rendered by EBlock in relation to the buying and selling of Vehicles. You agree that EBlock may deduct fees and any other amounts owing from any amounts payable to you, including sale proceeds.
- “Reserve Price” - means the price established by the Seller at which a Vehicle will be sold if bidding is completed and the Reserve Price is met or exceeded. If the Reserve Price is not met at the completion of the bidding, the high bidder automatically goes into an "IF BID" status where the Seller can either accept or reject the high bid or enter into negotiations with the Buyer.
- "Sale Price" – means the top bid amount from a Buyer where the Reserve Price has been met or exceeded or where the Seller has accepted the top bid and has approved the sale of the vehicle. Sale Price does not include additional fees or applicable taxes.
- “Live Appraisal” – means a Vehicle that is offered for sale or sold using EBlock’s instant Live Appraisal auction tool as opposed to the scheduled 1:30 pm auction.
- “Seller” - means a Customer who offers a Vehicle for sale or who sells a Vehicle on the Auction Platform.
- “Services” - means the tools and Services provided by EBlock to facilitate the sale of Vehicles, including any associated products and services provided to its Customers.
- “Vehicle” - means any automobile, truck or sport utility Vehicle listed on the Auction Platform. Vehicle may also include, but is not limited to, recreational Vehicles, motorcycles, trailers, boats and off road sport Vehicles.
- “Auction Platform” – means the EBlock online Auction Platform including all of its associated products and services.
- 3.Vehicle History Reports. EBlock provides an optional CARFAX Canada Report integration for Sellers. With or without this integration, Sellers are bound to properly disclose all Material Facts about a Vehicle they are offering for sale. The EBlock Condition Report asks Sellers the question: "CARFAX Canada claim on vehicle?”. If yes, the claim amount or estimate amount must be disclosed. Sellers are responsible to ensure all material facts are disclosed in the Condition Report. EBlock is not responsible for inaccurate information provided by CARFAX Canada reports or any Vehicle History provider.
- 4.Compliance. Every dealer and salesperson must comply with all national, provincial and local laws with respect to their buying and selling activities on EBlock.
- 5.EBlock Auction Platform: EBlock provides an Auction Platform to facilitate wholesale automobile transactions. The responsibility for completion of such transactions rest solely on the Buyer and Seller. EBlock does reserve the right to suspend and remove any delinquent Buyers or Sellers from the Auction Platform.
- 7.Registered Motor Vehicle Dealer/Salesperson. Every Customer using the Auction Platform must be a registered Dealer/Salesperson. In the event that a Customer’s license has expired or changed, it is the sole responsibility of the Customer to inform EBlock of such changes.
- 8.Liability and Risk. EBlock does not provide insurance coverage for any Vehicles purchased or sold on the Auction Platform. Every Customer is responsible to ensure it holds a valid garage insurance policy in accordance with the laws of Canada.
- 9.Limitation of Liability. Customer agrees that EBlock will not be liable for loss of profits or for any claim against the Buyer or Seller or any third party. It is the Sellers responsibly to ensure proper payment has been secured and the Vehicle Release Form has been provided by EBlock before releasing a Vehicle. EBlock will not take responsibility for any claims arising from the purchase or sale of Vehicles on the Auction Platform. The Customer agrees to indemnify and hold EBlock harmless from, and against, any and all liabilities, damages, losses, expenses, demands, claims or suits. EBlock is a software service provider and is not a party to transactions conducted on the Auction Platform between Buyers and Sellers. EBlock does not own or take title to Vehicles listed or sold on the Auction Platform.
- 10.Warranties. EBlock will not be liable to either the Buyer or Seller for any defects of any Vehicle. EBlock does not make any guarantees or warranties with respect to any Vehicle offered for sale on the Auction Platform.
- 11.Investigations. By doing business on the platform, you authorize EBlock to comply with authorities requests for information and/or documents concerning you and your business if, and when, reasonable requests from such authorities arise.
- 12.Listing a Vehicle on the Platform. A Seller will provide all required Disclosures and any and all other required information to list a Vehicle for sale on the Auction Platform. Sellers are responsible for the accuracy of their vehicle listings and will be required to assist in arbitrations arising from listing errors, particularly if the error results in an apparent financial gain to the seller.
- 13.Bidding on the Platform. A Buyer may bid on a Vehicle that is listed for sale by entering the dollar amount he/she wishes to bid. Once a bid is submitted, it cannot be withdrawn. All bids are final and binding.
- 14.Electronic Signature. With regard to the completion and execution of Vehicle transfer of ownership registration documents and sales agreements between Buyer and Seller, Customer appoints EBlock as its agent. Customer authorizes EBlock to execute all documents and receipts acting as Customer’s agent relating to the purchase and/or sale of Vehicles on EBlock’s Auction Platform. EBlock, in its discretion, will use Customer’s electronic signature in accordance with Ontario’s Electronic Commerce Act, 2000, S.O. 2000, and similar provincial and federal laws. Customer authorizes EBlock to capture, store and apply Customer’s digital or electronic signature to sales agreements and ownership transfer documents and all other incidental or related documents and instruments.
- 15.Fees. Fees charged by EBlock for Services such as buying, selling, arbitration and Vehicle inspection will be billed once the service has been provided and are payable upon receipt. Overdue accounts will be subject to interest charges, which will be added to weekly billings. Accounts overdue past 60 days may be subject to loss of access to EBlock’s Auction Platform and collection by a third party. EBlock, at its sole discretion, reserves the right to apply penalty charges for late payments, late titles and transport costs arising from late Vehicle collection.
- 16.Vehicle Payment Terms. Customers shall pay EBlock the total purchase amount within two (2) business days from the date the Vehicle is available (the “Available Date”), being the later of either the purchase date or the date of arrival in the case of a Live Appraisal (the “Payment Due Date”). Payment is to be made by wire transfer or electronic funds transfer in Canadian dollars or such other payment method approved by EBlock who reserves the right to specify the type of payment instrument it will accept from Customer. if Customer fails to pay Fees or other amounts owing when due to EBlock, then EBlock will be entitled to immediately set off the amount owed by Customer from any funds owing by EBlock to Customer. In addition, if Customer fails to pay the total purchase amount within five (5) business days from the Available Date, EBlock may: (a) withdraw all arbitration rights on the Vehicle; (b) retain possession of any Vehicles owned or controlled by Customer; (c) withhold title documents until all amounts owed have been paid; (d) cancel the sale transaction; (e) charge a late payment fee of $250 per Vehicle, and/or charge interest on any past due amounts at the rate of one and one half (1.5%) percent per month or the maximum rate allowed by law, whichever is less; and/or (f) pursue any other remedy or relief permitted by law. Any payment instrument withdrawn, rejected or returned for non-sufficient funds (“NSF”) must be settled and replaced immediately by certified cheque or bank draft. NSF transactions will be subject to a $100 service charge and shall be immediately due and payable. In addition to the $100 service charge, Customer agrees to pay all costs including, without limitation, legal fees and disbursements, court costs and other expenses reasonably incurred by EBlock to collect any monies owed by Customer. If Customer fails to pay the total purchase amount within ten (10) calendar days from the Available Date, EBlock will: (a) lock Customer account prohibiting further purchase and/or sale of Vehicles; and (b) relist and sell the Vehicle in the EBlock Auction where Customer is fully responsible for any loss on resale as well as the aforementioned $250 late payment fee. EBlock, at its sole discretion, may require Customer to enroll in the Pre-Authorized Debit Program, whereby Vehicle total purchase amounts will be automatically deducted from Customer bank account within two (2) days of the Available Date. To secure payment to EBlock by the payment due date, the Customer hereby grants to EBlock, a continuing general security agreement in and to all of the Customer’s right, title, and interest in and to the following (the “Collateral”):
This general security agreement attaches, immediately following a default by the Customer to make payment to EBlock by the payment due date. The Customer agrees that this general security agreement shall attach to all existing and after-acquired Collateral. EBlock shall have all remedies granted to it under the laws of the Province or State in which the vehicle in question is located following the sale of the said vehicle.
- a) All present and after-acquired property, assets and undertaking of the Debtor of every kind and nature whatsoever, including all Accounts, Goods (including Inventory, Equipment and Motor Vehicles, but excluding Consumer Goods), Intangibles, Chattel Paper, Documents of Title, Instruments, Securities and all other Investment Property, Money, and any other contract rights or rights to the payment of money.
- b) All Proceeds and products of each of the foregoing, including any and all Proceeds of any insurance, indemnity, compensation for loss or damage, warranty or guarantee payable to the Debtor from time to time with respect to any of the foregoing.
- c) All books and records relating to the foregoing, including in any form or medium.
- d) The last day of the term of any lease, verbal or written, or any agreement to lease, now held or hereafter acquired by the Debtor is hereby excepted out of the security interests hereby created, but should the Security Party need to enforce against the Collateral, the Debtor shall hold the last date in trust for the Secured Party and shall assign it to any person acquiring the term or that part of the term that is charged in the course of any enforcement or realization of the Collateral.
- 17.Liens on Vehicles. Sellers are responsible to ensure all vehicles sold on the Auction Platform are free of liens and encumbrances. If a lien has been paid out but is still listed on the lien registration system, the Seller must provide proof of lien release in the form of a letter from the secured party. Sellers have a maximum of 7 calendar days to provide proof of lien release. For Live Appraisals, this 7-day period cannot start prior to a Vehicle being available for pick-up from the Seller’s lot, also referred to as the arrival date. If a Seller cannot provide proof of lien release within 7 calendar days, the buyer may file an Arbitration claim with EBlock at which time a 2 business day grace period will be applied. Any decision to cancel the sale or to extend the 7-day deadline or 2 day grace period will be at the sole discretion of EBlock. In the event a sale is cancelled as the result of an open and unreleased lien; the Seller will remain responsible for the sell, processing, capture and Carfax fees and will be charged a $250 cancellation fee payable to the buyer and will be held responsible for all reasonable expenses incurred by the Buyer. The EBlock Arbitrator will determine what reasonable expenses are eligible for reimbursement from the Seller. Retail or wholesale profit loss will not be considered a reimbursable expense.
- 18.Seller Content. The Seller is solely responsible for all content it posts on the Auction Platform and EBlock shall not be responsible or liability to any Customer or third party for damages or costs resulting from such content. EBlock reserves the right to modify, refuse or remove any and all Seller content at its sole discretion. The Seller represents that all Seller content is accurate and truthful and in compliance with applicable Canadian law.
- 19.Vehicles Listed for Sale. When a Vehicle is listed for Sale on the Auction Platform, it is the Sellers responsibility to ensure the Vehicle is available for sale and has not been sold elsewhere. If a double sale has occurred which results in a sale cancellation, the Seller will be charged a $250 cancellation fee and will be responsible to pay all Fees (buy/sell & processing) that would have been due and payable had such Vehicle been sold on the Auction Platform.
- 20.Sales Taxes. All Vehicles sold on the Auction Platform are subject to provincial, federal and/or harmonized taxes as governed by the Province from which a vehicle is being sold. These taxes are based on location of supply and not on the location of the Buyer. The Buyer is solely responsible for these taxes as documented on the bill of sale from the Seller.
- 21.Sale Cancellation. EBlock may, in its sole discretion, cancel any sale transacted on the EBlock platform. Reasons for cancellation include, but are not limited to, errors or omissions in vehicle descriptions or disclosures, pricing errors, title problems or any other matter deemed to be relevant by EBlock.
- 22.Governing Law and Jurisdiction. All disputes, claims, actions or suits arising from any Customers use of the EBlock Auction Platform or concerning the validity, interpretation or performance of these Terms of Service and any of its terms and provisions, or any rights or obligations of the parties hereto, shall be governed by and resolved in accordance with the laws of Ontario. All parties hereby irrevocably consent to the jurisdiction and venue of courts of competent jurisdiction located in Ontario and agree that all such suits or proceedings shall be brought only in such courts.
- 23.Required Disclosure. Every Seller shall disclose all material facts relating to the history and condition of each Vehicle listed for sale on the Auction Platform. It is the Sellers sole responsibility to ensure accuracy for all Vehicles listed. EBlock’s Arbitration Policy, included herein, specifically lists Seller Disclosure requirements and is compliant with OMVDA disclosure requirements and the NAAA Arbitration Policy.
- 24.Independent Dealers. Independent non-franchised dealers are not authorized to post appraisal Vehicles on the Auction Platform or to self-post non-Verified Vehicles on the Auction Platform without prior approval from EBlock on a per vehicle basis.
- 25.Vehicle Identification Number. All vehicles offered for sale on the Auction Platform must have a visible, intact and properly affixed public VIN plate or a replacement VIN plate in accordance with Provincial and Federal regulatory requirements. If a VIN has been replaced the Seller must provide a Disclosure to that effect.
- 26.Registrations/Titles. The Seller has a maximum of 7 calendar days to provide the registration/title document to EBlock and will not receive proceeds of sale until a clear title, free of liens and encumbrances, has been received by EBlock. For Live Appraisals, this 7-day period starts when a Vehicle is available for pick-up from the Seller’s lot, also referred to as the arrival date. If the Buyer has not received the registration/title within that time frame, the Buyer must contact EBlock at which time a 48-hour (2 business day) grace period will be applied. If the Seller cannot produce the registration/title within the 48-hour grace period, the Buyer has a right to arbitrate the Vehicle. Any decision to cancel the sale or extend the grace period will be at the sole discretion of EBlock. If a sale is cancelled under these circumstances, the Seller will remain responsible for the sell, processing, capture and Carfax fees and will be charged a $250 cancellation fee payable to the buyer and will be responsible for reasonable expenses incurred by the Buyer as approved by EBlock. Retail or wholesale profit loss will not be considered a reimbursable expense.
- 27.Review of Vehicle Disclosures. Before bidding on any vehicle, it is the Buyers’ responsibility to review all Vehicle information that is made available through the Auction Platform including Seller Disclosures, Vehicle history reports and Condition Reports. Any Vehicle damage apparent in the photos submitted by the Seller is not subject to Arbitration. It is the Buyers’ responsibility to verify the condition of the Vehicle within the time period for Arbitration as set out in the Arbitration Policies. Failure to file an Arbitration claim within the required time frame may result in the loss of Buyer Arbitration rights.
- 28.Collecting Vehicle. Vehicles sold on the Auction Platform must be collected from the pick up location indicated on the bill of sale at the sole expense of the Buyer within 5 business days from date of the bill of sale or, where a PSI has been requested, within 5 business days of delivery of PSI results to the Buyer. Vehicles not collected from the Sellers’ lot within the required time frame may be moved to the buyers’ lot or to the nearest EBlock compound at the sole expense of the Buyer. If a Vehicle is being transported from the Seller to the Buyer, the Buyer is solely responsible for this expense. If the Vehicle is damaged in transport, it is the sole responsibility of the Buyer and the transport company. EBlock will not be held liable in any way for any damage to a Vehicle incurred while being transported.
- 29.Exports. Arbitration is not available on claims that Vehicles do not meet applicable export or Import requirements. Any Vehicle that has left Canada will not be eligible for Arbitration.
EBlock disclosure requirements and Arbitration Policy are compliant with the Ontario Motor Vehicle Dealers Act (OMVDA) and the Canadian Seller Disclosure Standard of the National Auto Auction Association (NAAA).
- 30.Verified Vehicle. Verified Vehicles are captured by trained EBlock representatives. The EBlock Capture Representative will ensure that Vehicle year, make, model and equipment are accurately recorded and all visual cosmetic damages are properly disclosed. Any undercarriage damage, structural damage or major mechanical problem disclosures are the sole responsibility of the Seller. EBlock Capture Representatives do their best to ensure all visible damages are disclosed. It is the Buyer’s responsibility to view all photographs provided in the Vehicle listing prior to bidding. Sellers are responsible to review their listings to ensure all damages, required disclosures and mechanical issues are properly described. No one has the opportunity to know more about a vehicle than the Seller.
- 31.Expected Delivery Date - Appraisal Vehicles. In the event a buyer has submitted a winning appraisal bid and the appraised vehicle has not landed at the selling dealership within 10 calendar days of the expected delivery date listed on EBlock, the buyer has the option to release his interest in the Vehicle and not accept the Bill of Sale. It is the Buyer’s responsibility to notify the EBlock Arbitrator of their intent to exercise this option. The potential sale will be cancelled and the seller will be informed of such cancellation.
- 32.Arbitration Claim Submission. In the event a Buyer feels there are inaccuracies or misrepresentations in a vehicle Condition Report, the Buyer can file an Arbitration claim with EBlock. The claim must be submitted within the Arbitration deadlines and after the Vehicle has been paid for and is in the Buyers possession. The Arbitrator will determine if the claim is on time and valid.
Arbitration claims must be submitted via the Arbitration Request Form available on the Auction Platform. If a Buyer is unsure whether a claim is valid they should submit the claim regardless, or they can contact the Arbitrator directly for verification before submitting. Arbitration submissions and inquiries must be made within the Arbitration deadlines.
- 33.Normal Arbitration Deadlines. The Normal Arbitration claims deadline is 2 business days following receipt of the vehicle. Day 1 of the Arbitration time frame is the day of delivery and receipt of the Vehicle. In some circumstances, where the Vehicle is delivered via transport and delivered on a weekend, day 1 for Arbitration will commence on the Monday of that week. The Buyer may be required to submit the transport bill of lading for proof of delivery date. Refer to the Vehicle Disclosure Requirement Chart for more details.
- 34.Extended Arbitration Deadlines. The Extended Arbitration claims deadline is 7 business days following receipt of the vehicle. The extended deadline is offered for issues that are more difficult to determine and/or more serious in nature. Refer to the Vehicle Disclosure Requirement Chart for more details.
- 35.Odometer Readings. Once a Vehicle is in Arbitration, the Buyer must not drive or test drive the vehicle until a resolution has been determined. If the vehicle has been transported via carrier, no more than 50 additional kilometres can be recorded on the odometer. If the vehicle is a drive away, no more than 200 additional kilometres can be recorded on the odometer in order for the claim to be valid. In the event the odometer has exceeded the above guidelines, EBlock at its sole discretion, can accept or deny the arbitration.
Appraisal valuation Buyers should expect a higher odometer reading than that disclosed at the time of appraisal. A continuation of normal driving based on Vehicle’s history can occur between the appraisal date and the Expected Delivery Date. Additional kilometers driven during this period will not affect a Buyer’s right to Arbitration.
Determination of excessive added kilometers will be at the sole discretion of the Arbitrator.
- 36.Arbitration Process and Costs. Once an Arbitration is accepted, the Arbitrator will review all details and work through the Arbitration process towards a final and binding resolution. The Arbitrator will only consider matters listed on the initial claim. If a third-party Arbitration inspection is required, the party determined to be at fault will be responsible to pay the cost of inspection. Post-Sale Inspections (PSI) conducted at the request of the Buyer will remain a Buyer expense and cannot be charged to the Seller or refunded by EBlock. At the sole discretion of the Arbitrator, a resolution ruling can be made requiring a Seller or EBlock to repair defects and/or provide compensation to a buyer to maintain a Vehicle transaction and avoid sale cancellation. The Arbitrator’s decision is final and binding on both Buyer and Seller.
In the event of a cancelled sale through Arbitration, the Vehicle must be returned to the Seller in the same or better condition than when it was sold. Additional damage incurred on the Vehicle in the Buyer’s care may result in Buyer’s loss of right to cancel or financial compensation from the Buyer to the Seller. EBlock will make the final decision in such cases. Vehicle registrations on cancelled sales must be returned to the EBlock head office within 7 days of the cancellation at the expense of the buyer or the buyer may risk revocation of the cancellation.
On completion of Arbitration, the party at fault will be responsible for Arbitration inspection fees (if applicable) and the transport cost (if qualified). Where the Seller is at fault, inspection and transport costs must be paid by the Seller. Failure to make such payment may result in loss of auction privileges. Proof of transportation cost must be provided to EBlock in the form of a proper invoice from a licensed transport company. Dealership driveaway costs will not be considered for reimbursement to the Buyer. Buyers will forfeit compensation for transport costs on cancelled sales where the arbitration claim was filed late and/or the cancellation was the result of EBlock goodwill. Sellers with multiple recurring arbitrations may be subject to a fee of $200 per valid Arbitration and will be invoiced directly by EBlock.
- 37.NOT Eligible for Arbitration. Vehicles that are not paid by the Buyer within 5 business days and picked up within 10 calendar days of being available, are not eligible for arbitration unless the vehicle has been transported. In the event the vehicle is delivered via carrier, a grace period of up to 14 days may be granted at the discretion of the Arbitrator. In some circumstances, at the discretion of the Arbitrator, this time frame may be extended based on circumstances such as weather, distance between Buyer and Seller or carrier break down.
A Vehicle is not eligible for Arbitration if it is no longer in the Buyer’s possession.
- 38.AS IS. Arbitration rights are limited on Vehicles sold AS-IS. Vehicles that are 10 model year old or older or have been driven 160,000 kilometers will be rated AS-IS when sold on the EBlock system. Sellers can choose to override the AS-IS rating and provide buyers with full Arbitration rights. When the AS-IS rating is overridden, the seller must uphold all obligations as outlined in EBlock Terms & Conditions and Arbitration Policy.
AS IS vehicles can only be Arbitrated for the following:
AS IS Vehicles sold for $2,500 or more
- Odometer issues such as rollback, replacement, TKU
- Title issues
- Branding issues and insurance total loss
- Existing structural damage caused by collision only
- Undisclosed accident repair over $3,000 ($2,000 in BC)
- Undisclosed Body/Interior damages/defects over dollar threshold - Arbitrator sole discretion
- Undisclosed major repairs to engine/driveline over $3,000 – aftermarket or used parts.
AS IS Vehicles sold under $2,500
- Odometer issues such as rollback, replacement, TKU
- Title issues
- Branding issues and insurance total loss
- Existing structural damage caused by collision only
- Undisclosed Accident Repair over $3,000 ($2,000 in BC)
- Undisclosed Body/Interior damages/defects over dollar threshold - Arbitrator sole discretion
- Undisclosed non-running vehicles – Arbitrator sole discretion
- 39.Major Deception. An arbitration ruling in favour of the buyer will occur in cases of major deception on the part of the seller. "Major Deception" means an intentional act, representation or omission that materially affects the value of a vehicle and would be regarded as misleading, unprofessional or unethical. A Major Deception ruling is at the sole discretion of the Arbitrator and is difficult to prove as it requires the seller to have knowingly committed the act, representation or omission.
VEHICLE DISCLOSURE REQUIREMENTS
Source – NAAA Canadian Seller Disclosure Standard – January 2017.
Declaration: ABS Defective
The seller must disclose if the anti-lock braking system is not operational (if equipped). Arbitration is only available for repairs over the applicable Arbitration Dollar Threshold (see Major Repair).Regular Arbitration Period
Declaration: Accident Repair
The seller must declare a vehicle to be Accident Repaired if the total cost to fix damage caused by a single incident was $3,000 or more ($2,000 cumulative incidents in BC). The Accident Repair declaration must be made regardless of whether the damage was caused by collision, accident, weather or some other incident. If the dollar value of the repair is known, it must be declared. If the dollar value of the repair is not known but estimate data is available, the estimated damage must be disclosed. Although not required, if the Seller chooses to declare and accident repair under $3,000 ($2,000 in BC), it may do so. Arbitration is not allowed for repairs under $3,000 ($2,000 cumulative in BC). Regular Arbitration Period
Declaration: Adjacent Panels Replaced
Seller must declare if two or more adjacent panels (excluding bumper panels) have been replaced on a Vehicle. If the panels were replaced due to an accident or other incident, depending of the cost of repairs, it may also be necessary for the Seller to make an Accident Repair declaration. Regular Arbitration Period
Declaration: Air Bags Missing/Defective
Seller must disclose if the vehicle’s airbags are missing or not operational. Arbitration is only available for repairs that exceed the Arbitration Dollar Threshold (see Major Repair). Regular Arbitration Period
Declaration: Alternate Fuel or Conversion
Seller must disclose if the vehicle uses propane or natural gas, or at any time had a propane or natural gas fuel system. Regular Arbitration Period
Declaration: Excessive Rust
Seller must disclose if the vehicle suffers from excessive rust. Rust is considered to be excessive when the location or quantity of rust affects the structural integrity of the vehicle, e.g. the frame or any structural component is perforated by rust. Regular Arbitration Period
Declaration: Fire Damage
Seller must disclose if vehicle has been damaged by fire. Extended Arbitration Period
Declaration: Flood Damage
Seller must declare a vehicle as Flood Damaged when water or other liquid has penetrated the vehicle to a level of the floor boards or higher, or if any of the following components have been damaged due to immersion:
Extended Arbitration Period
- Front or rear lighting or wiring harnesses
- Engine or its major components
- Transmission or differential
- Dash instrument panel and wiring
- Passenger seat cushions
- Power seat or window motor
- Major sound system components
Declaration: Grey Market
Seller must declare if the vehicle was ever registered in a country other than the United States or Canada in the past 36 months or manufactured not in compliance with North American standards. All Grey Market vehicles offered for sale must include a CARFAX Canada Verified vehicle history report, or equivalent. Regular Arbitration Period
Declaration: Incorrect Vehicle Marking
Seller must disclose if any logo, badge, decal, emblem, ornament or similar marking on the vehicle does not match the make, model or series of the vehicle. Regular Arbitration Period
Regardless of whether the vehicle title has been branded, the Seller must disclose if the Vehicle is not capable of being repaired for roadworthy operation and my only be used for parts or scrap. Irreparable Vehicles are assumed to also be Total Loss Vehicles and thus the Total Loss declaration does not need to be made. Extended Arbitration Period
Declaration: Km _________
If the odometer reading is accurate, the Seller must disclose the distance the Vehicle has travelled as indicated on the odometer. Minor odometer discrepancies of 3,000 km or 5% (whichever is less) are not subject to arbitration. Extended Arbitration Period
Declaration: Major Repair ________(details)
Where the cost of a repair exceeds the Arbitration Dollar Threshold, the Seller must disclose if a Major Component of the vehicle is defective or not operational or if there are any accessories that are not working (e.g. cruise control, lane departure warning etc.). Major components include:
Where the cost of repair exceeds the Arbitration Dollar Threshold, the Seller must disclose body damage (including hail damage), interior damage, non-mechanical or non-electrical defects (excluding Wearable items and Normal Exterior Wear and Tear). General Reconditioning items and Normal Wear and Tear are not subject to Arbitration.
- Power train
- Electric / Air ride suspension
- Computer equipment
- Fuel operating system
- Electrical system
- Emissions system
- Anti-lock braking system
- Body/Interior damage & defects
Arbitration Dollar Threshold:
The Arbitration Dollar Threshold is calculated before taxes, on a non-cumulative basis and in accordance with standard Mitchell warranty rates and does not include diagnostic charges.
- Major Components & Accessories - $750 repair cost for vehicles sold under $40,000 or 2% of the Sale Price for vehicles $40,000 and over
- Body/Interior damage & Defects - $500 repair cost
Wearable Items and Normal Exterior Wear and Tear are not subject to arbitration.
Wearable Items are parts of the Vehicle that the manufacturer recognises the need for replacement or adjustment during the expected life of the vehicle. These items are normally identified in the Owner’s Manual for routine check and replacement and include, but are not limited to: wipers, brake pads, shoes, rotors, calipers, belts, hoses, tires, lubricants, fluids, timing belts, bulbs, filters, manual clutch, shocks and struts.
Normal Exterior Wear and Tear means damage that would be considered normal wear and tear given the distance travelled and the age of the Vehicle and is easily seen, such as scratches that do not break the paint, minor nicks, cuts and/or scuffs.
Noise and Inherent Conditions. Arbitration cannot be based on noises or conditions that are inherent or typical to a particular model or manufacturer, unless deemed “excessive” by the arbitrator on non-warranty items. OEM dealer warranty guidelines will be used where applicable to determine whether the condition is excessive.
Regular Arbitration Period
Declaration: Manufacturer Repurchase _______ (details)
Seller must disclose if the motor Vehicle was repurchased by the manufacturer under the Canadian Motor Vehicle Arbitration Plan or under the laws of any jurisdiction including, but not limited to, U.S. lemon laws. If the reason for, date and/or jurisdiction of the repurchase are known, they must be disclosed. Regular Arbitration Period
Declaration: Material Variation from Production Specifications
Seller must disclose if the vehicle varies materially from the original manufacturer’s specifications. Regular Arbitration Period
Declaration: Odometer 5 Digit
Seller must disclose if the odometer is a 5-digit odometer with over 100,000 miles or kilometers. Regular Arbitration Period
Declaration: Odometer Broken/Faulty
Seller must disclose if the odometer of the Vehicle is broken or faulty, i.e. not accurately tracking distance driven. Regular Arbitration Period
Declaration: Odo in Miles
Seller must disclose if the odometer is in miles. Regular Arbitration Period
Declaration: Odo Replaced
Seller must disclose if the odometer has been replaced. Extended Arbitration Period
Declaration: Odo Roll Back
Seller must disclose if the odometer has been rolled back. Extended Arbitration Period
Declaration: Odo Unreadable
Seller must declare the odometer to be unreadable if it is accurately tacking distance driven but cannot be read due to pixel damage, because the vehicle cannot be started to obtain an odometer reading, or similar reason. Regular Arbitration Period
Declaration: Out of Province
If the province of the last registration (or equivalent) to a retail customer is different than the jurisdiction from which the Vehicle is currently being sold, the Vehicle must be declared an out of province Vehicle and the Seller must identify the last province in which the Vehicle was registered (or equivalent) to a retail customer. Regular Arbitration Period
For vehicles sold in Ontario only:
A vehicle remains an out of province vehicle and must be so declared, if it was previously registered (or equivalent) to a retail customer in another province and has been registered in Ontario for less than 7 consecutive years.
The Seller must declare all of the provinces in which the vehicle was previously registered.
Declaration: Paint Work
Seller must disclose prior paint work on Vehicles current model year and newer (excluding bumpers). Regular Arbitration Period
Declaration: Previous Daily Rental
Seller must disclose if the Vehicle was previously used as a daily rental Vehicle (unless subsequently owned by a non-dealer). Regular Arbitration Period
Declaration: Previous Driving School
Seller must disclose if the Vehicle was previously used as a driving school vehicle. Regular Arbitration Period
Declaration: Previous Emergency Services Vehicle
Seller must disclose if the Vehicle was previously used as an emergency services vehicle. Regular Arbitration Period
Declaration: Previous Police Vehicle
Seller must disclose if the Vehicle was previously used as a Police Cruiser. Regular Arbitration Period
Declaration: Previous Racing Vehicle
Seller must disclose if the Vehicle was previously used in organized racing. Regular Arbitration Period
Declaration: Previous Taxi/Limo/Rideshare
Seller must disclose if the Vehicle was previously used as a taxi or limousine or rideshare service vehicle (Uber/Lyft). Regular Arbitration Period
Declaration: Stolen and Recovered
Seller must disclose if the vehicle was recovered after being reported stolen. Extended Arbitration Period
Declaration: Structural Alteration
Seller must disclose if there has been any alteration to the Vehicle’s structure such as lengthened or shortened frame, modified suspension, snowplough, hitch or fifth wheel. Regular Arbitration Period
Declaration: Structural Damage
Seller must declare a vehicle to have Structural Damage if there has been damage to the structure or a specific structural component of the Vehicle that meets the definition of structural damage as set out in Section VIII of the National Auto Auction Association’s Arbitration Policy regarding Structural Damage. (See the Standards section on the NAAA website found at www.naaa.com) Extended Arbitration Period
Declaration: Title Branded _________ (brand)
Seller must disclose if the Vehicle’s title has been branded in accordance with provincial or state law and must indicate the brand(s) assigned. Title brands can change when vehicle registration moves between provincial or state jurisdictions (Rebuilt title in Seller province/state becomes Salvage Title in Buyer province/state). Buyers are responsible to be aware of provincial and state branding regulations and may not Arbitrate a vehicle where title branding was properly disclosed in the Seller’s jurisdiction. Extended Arbitration Period
Declaration: True Kilometres Unknown (TKU)
Seller must declare a vehicle TKU if the distance travelled is unknown and there are no reliable records available to verity the odometer reading as of a certain date. When a Vehicle is declared TKU, the total distance that the vehicle had driven is likely substantially higher than the reading shown on the odometer. Extended Arbitration Period
Declaration: TKU _________km as of________(date)
If the total distance travelled is unknown, but based on reliable records, the distance driven as of a certain date is known, the Seller must declare the last known distance and provide the date. Extended Arbitration Period
Declaration: Total Loss
Seller must declare if an insurer determined the Vehicle was a total loss. Extended Arbitration Period
Declaration: U.S. Vehicle
Seller must declare if the Vehicle was ever registered in the United States or manufactured not in compliance with Canadian standards. All U.S. Vehicles offered for sale must include a CARFAX Canada Verified vehicle history report or equivalent. Regular Arbitration Period
Declaration: VIN Plate Issues
Seller must disclose if the original VIN plate (on the driver’s side of the dashboard) had been removed, altered or replaced. Vehicles may not be offered for sale unless the original VIN plate is intact or has been replaced in accordance with provincial and federal regulatory requirements. Regular Arbitration Period
Declaration: Warranty Cancelled
Seller must disclose if the manufacturer has cancelled the warranty on the Vehicle or has given notice of its intention to do so. Notice of warranty cancellation given after the date of sale is not subject to Arbitration. Regular Arbitration Period
Declaration: Year _________ Make ________ Model ________ Series ________
Seller must disclose the year, make, model and series (i.e. trim level) of the Vehicle as indicated by means of VIN decoding Regular Arbitration Period
Regular Arbitration Period Two (2) business days after delivery to the Buyer
Extended Arbitration Period Seven (7) calendar days after delivery to the Buyer
Policy Amendment 1 – May 19, 2016
Policy Amendment 2 – September 27, 2016
Policy Amendment 3 – October 12th, 2016
Policy Amendment 4 – November 4, 2016
Policy Amendment 5 – March 16, 2017
Policy Amendment 6 – May 1, 2017
Policy Amendment 7 – June 23, 2017
Policy Amendment 8 – November 15, 2017
Policy Amendment 9 – January 11, 2019
Policy Amendment 10 – July 2019
Policy Amendment 11 - April 28, 2020
Policy Amendment 12 - November 9, 2020