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Auction Arbitration Policies – Georgia Car Law Authority

By August 4, 2022No Comments

In this video, we talk about how disputes at the auction are handled. If you have ever had an issue with an auction, you’ll want to know the deadlines and rules for resolving that dispute with the auction.

Below is a transcript of the video:

Here is something I get a lot: a client calls and says, “Hey, Steven, I need you to sue the auction” and I start laughing because it’s almost impossible to do. I say, “why do you need me to sue the auction?” And it is always something to do with the car wasn’t in the condition they thought it was in, the disclosure wasn’t right, they couldn’t see a certain corner of it in the picture, it broke down later, it won’t pass emissions, or they didn’t get the title.

A little bit of a different story, but it almost always relates to one of those issues. Well, the bad news is you can’t really sue the auction for those problems. The auctions are protected, number one by contract, but they also have an arbitration policy that governs almost every single auction transaction. The problem is most dealers don’t take the time to read the arbitration policy and by the time they decide to do something about the vehicle, it’s too late.Auction Arbitration Policies

Most of these auction arbitration policies have very, very strict deadlines under which the dealer can make a complaint or try and reverse a transaction. Title issues can be a little different. They can be a little more forgiving and some last years, frankly, if there are title issues. Remember that example I gave of the stolen car that was repossessed, a few buyers down the road? That was actually two years later and the auction reversed the transaction, so some title issues can happen later.

For the most part, most of the complaints arising from an auction sale must be brought to the auction’s attention within three days to a week. If it’s past that time, some auctions will allow it, but many have very strict policies that expire after 7 to 10 days at the longest. So any dealer that is going to start working with an auction MUST learn the art of the auction arbitration policy and specifically the deadline under which that auction will take a report or a complaint and address it.

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