Vehicle Condition Arbitration Policy

1. What can be arbitrated

A claim is eligible for Condition Arbitration only if all of the following are true:

• The claimed defect is a Material Defect: a mechanical, structural, electrical, frame, flood, fire, airbag, or emissions-equipment condition — or an inoperable major component — that existed on the Sale Date and costs $600 or more to repair, measured at wholesale rates under Section 8;
• The defect was not disclosed under Section 2 and is not excluded under Section 13;
• The claim is filed within the window in Section 4, with the evidence required by Section 6;
• The buyer paid in full by the Checkout Deadline and otherwise completed checkout on time — a buyer who paid late has no arbitration rights on that Sale;
• The vehicle has not been altered in breach of Section 12 (no repairs before validation, no resale, no registration transfer, no export), and the buyer has not driven it more than 150 miles since the Release Event (a claim filed after that is barred, because the condition can no longer be tied to the Sale).

Multiple defects on one vehicle may be combined in a single claim to reach the $600 threshold only if each defect independently costs $150 or more.

2. Disclosed means accepted

A defect is disclosed — and therefore not arbitrable — if a reasonable dealer reviewing the listing before bidding would have been alerted to it by any of: the structured Condition Report (including a parameter marked anything other than good, and any attached inspection notes); listing photographs or media in which the condition is visible; the listing description or announcements; an attached vehicle history report (including accident, brand, odometer, and title records in it); or the title status designation under the Title Policy.

Unverified listings. A listing whose Condition Report is designated as not fully verified (for example, a bulk-imported listing on which unanswered parameters were automatically marked "presumed good," always labeled as such to buyers) is itself a disclosure that the seller did not individually attest every parameter. On such listings, cosmetic and trim items are not arbitrable; Material Defects under Section 1 remain arbitrable.

Disclosure of a defect's symptom is disclosure of the defect (a disclosed warning lamp discloses the underlying fault); disclosure of one defect is not disclosure of an unrelated one.

Public records shown on the listing count as disclosed. Open safety recalls displayed in the listing's recall tab, and any accident, brand, or odometer entry in an attached history report, are disclosed whether or not the seller repeated them in words. A widely documented model-pattern condition (a known engine, transmission, or emissions weakness of a specific year/make/model) is arbitrable only if it has actually failed or is failing on this vehicle — the mere existence of the pattern is not a defect.

3. Odometer variance

Mileage is arbitrable only if the vehicle's actual odometer reading at pickup exceeds the listed mileage by more than 500 miles, or if the odometer is discovered to be inoperative, replaced, or inconsistent with title or history records in a way the listing did not disclose. Odometer discrepancies that trigger federal disclosure obligations (49 U.S.C. § 32705) are arbitrable regardless of the 500-mile allowance and may also be reported to authorities.

4. Claim window

A Condition Arbitration claim must be opened through the Platform within 10 calendar days after the Release Event — the confirmed pickup or delivery recorded by the buyer's pickup code — with the release day counting as day one. The Platform shows the exact closing time on the purchase; that timestamp controls.

Because the window runs from the day the buyer actually receives the car, there is no separate transport extension: a long haul does not shorten the buyer's inspection time, and a seller who releases late does not gain from it. A buyer who takes delivery and does not inspect promptly has chosen to spend the window.

Extended window (optional). Where offered at checkout, a buyer may purchase an extension of the arbitration claim period for that vehicle at the price in the Fee Schedule: +10 calendar days or +20 calendar days added to the end of the standard window. An extension changes only the deadline; every other rule here (thresholds, evidence, exclusions, the 150-mile limit) still applies, and the buyer must still remove the vehicle from the seller's lot within the pickup window in the Terms of Service. The extension is not a warranty, extended warranty, service contract, or insurance: it does not promise that the vehicle will perform, cover repairs or parts, or add any remedy beyond those of this policy — it only gives the buyer more time to file a claim under it.

General disputes that are not about condition (payment, release, title timing, transport) use the separate in-app dispute tool, which stays open for 14 calendar days after the Release Event — plus the same number of days when the buyer purchased an extended claim window; they are governed by the Terms of Service, the Title Policy, and the Transportation Support Policy, not by this policy.

Claims opened after the applicable window are barred, and the Sale is final as to condition.

5. Claimant eligibility

Only the buyer of record on the Sale may bring a claim. The buyer must have paid on time (Section 1), must still own and possess the vehicle (or have it in the carrier's or seller's possession during an unwind), and must not be suspended for payment default. A buyer designated Limited Arbitration under Section 15 may bring only the claims listed there.

6. Evidence and inspection

Opening a claim. File through the in-app dispute tool on the purchase, selecting the defect category and providing: a written description; clear photographs and, where the defect is audible or intermittent, video; the vehicle's current odometer reading with a photo; and a written repair estimate or diagnostic report when available. Claims may also be initiated by email to support@laneuppro.com but must be completed in-app.

Evidence deadline. When Apex Auto Group Inc. asks either party for specific evidence or diagnosis (additional photos or video, a scan-tool report, a written estimate from a repair facility, an odometer photo), the party has 3 Business Days to provide it. A buyer who does not meet an evidence deadline has the claim closed, and it cannot be reopened; a seller who does not meet one is treated as having no objection to the buyer's evidence on that point.

Seller response. The seller must respond in-app within 5 Business Days with its position and any rebuttal evidence (pre-sale photos, service records, inspection data). Silence is treated as no objection to the buyer's evidence.

Inspection. Apex Auto Group Inc. may require an inspection by an independent inspector or repair facility of its choosing before deciding. If the claim is validated, the inspection cost is charged to the seller; if the claim is denied, to the buyer. Both parties must make the vehicle and records reasonably available; a party who obstructs inspection loses the point the inspection would have established.

7. Decision

Apex Auto Group Inc. decides every Condition Arbitration claim on the evidence submitted, aiming to decide within 10 Business Days of the seller's response deadline. The decision is final and binding on both buyer and seller as to the vehicle's condition and the remedy, and both parties waive any further claim against each other or against Apex Auto Group Inc. regarding the condition matters decided, except enforcement of the decision itself. During an open claim we may hold the seller's payout and any related amounts.

8. Possible outcomes

Exactly one of the following, chosen by Apex Auto Group Inc. to fit the validated facts:

• No action. The claim is denied; the Sale stands as-is and the payout releases.
• Repair payment. A credit from seller to buyer equal to the reasonable wholesale cost of repairing the validated defect: parts at wholesale/aftermarket or recycled-part pricing where appropriate, labor at a standard wholesale rate of $85 per flag hour ($95 for hybrid and electric high-voltage systems) using published labor-time guides, minus the first $150 of each combined-claim defect below the $600 threshold. Paid by payout deduction, Platform Balance transfer, or refund to the buyer's payment method.
• Sale cancellation. The Sale is cancelled and unwound under Section 10 — reserved for defects that materially change what the vehicle is (undisclosed frame/flood/fire/airbag, title-brand-level conditions, odometer violations) or repair costs exceeding 25% of the sale price. Only Apex Auto Group Inc. can cancel a Sale under this policy; neither party may treat a Sale as cancelled on its own, and the buyer's sole remedy on cancellation is the unwind in Section 10.

Low-value cap. For vehicles with a sale price of $5,000 or less, total repair payments are capped at 35% of the sale price; if the validated cost exceeds the cap, the remedy is either the capped amount or cancellation, at Apex Auto Group Inc.'s election. No remedy ever exceeds the sale price.

Inspector-backed cosmetic coverage. When a LaneUpPro inspector completed the Condition Report and a *cosmetic* item that was present and visible at inspection was left out of the report (including its photos), and the item would otherwise be arbitrable, Apex Auto Group Inc. — not the seller — bears that repair credit. This does not extend to mechanical, structural, title, or odometer matters, to anything the seller knew, or to damage occurring after the inspection.

9. One arbitration; as-is after credit

Each vehicle may be arbitrated once. All known and reasonably discoverable defects must be included in that one claim; defects omitted are waived. Once a repair payment is issued or a claim is decided, the vehicle is as-is in the buyer's hands for every condition matter, discovered or not, and no further claim may be opened on that Sale.

10. Unwind mechanics on cancellation

• Refund. The buyer's vehicle payment and buyer fee are refunded in full through the original payment method or, where that is impossible, by manual transfer or Platform Balance credit, once any title document already delivered is returned. Fee treatment follows the Fee Schedule.
• Return transport. The seller pays return transportation to the seller's location (by an independent carrier) and must have the vehicle collected within 10 calendar days of the decision; if it does not, Apex Auto Group Inc. may arrange the return at the seller's expense. If the buyer caused the cancellation to be necessary in part (for example, use beyond Section 12), costs may be allocated between the parties in the decision.
• Buyer's original transport. Where the cancellation results from the seller's non-disclosure, the seller also reimburses the buyer's documented cost of the original transport to the buyer's location, up to $500; there is no cap where the seller cancelled or refused to perform.
• Storage and care. The buyer must store the vehicle with reasonable care, not drive it except to load, and make it available for return pickup within 5 Business Days of the decision. After that, storage charges under the Fee Schedule accrue against the party causing delay.
• Risk. Risk of loss rests with the party in possession until redelivery to the seller, then with the seller.
• Title. Any title documents delivered are returned unaltered within 5 Business Days of the vehicle's return, per the Title Policy. Refund release may be conditioned on the title's return where it was already delivered to the buyer.

11. Seller responsibilities

• Disclose every known Material Defect, brand, and history item at listing time, and update the listing if something is discovered before the auction closes;
• Disclose a missing, modified, or inoperable catalytic converter and any emissions-equipment modification on every listing (this is also a legal duty in most states); on vehicles over 125,000 miles a catalytic converter is otherwise not arbitrable;
• Never clear diagnostic codes, unset readiness monitors, reset a warning lamp without completing the repair, or otherwise tamper with the vehicle before or after the Condition Report — any such act makes every resulting claim the seller's cost in full, regardless of thresholds, caps, or inspector-backed coverage, and is grounds for termination;
• Keep the vehicle in materially the listed condition until the Release Event;
• Respond to claims within the Section 6 deadline, cooperate with inspection, and complete validated remedies (payout deductions are authorized in advance);
• Accept an unwound vehicle back and refund obligations without conditions beyond this policy.

A seller with a pattern of validated non-disclosure may face listing restrictions, mandatory independent inspection at its own cost, or termination under the Terms of Service.

12. Buyer responsibilities

• Inspect on arrival. Examine the vehicle at pickup or delivery and note visible damage on the bill of lading or pickup record before signing; transport damage documented this way is a carrier claim under the Transportation Support Policy, not a condition claim against the seller;
• No repairs before validation. Do not repair, disassemble, or alter the claimed condition before the claim is decided or Apex Auto Group Inc. authorizes the work in writing — unauthorized work voids the claim;
• No resale or registration transfer of the vehicle, and no export, while a claim is open;
• Mitigate. Do not continue operating a vehicle in a way that worsens the claimed defect;
• Provide honest evidence. Fabricated or misleading evidence voids the claim and is a material breach of the Terms of Service.

13. Not arbitrable

The following are never grounds for a claim, regardless of cost:

• Normal wear and tear: brake and tire wear, wiper blades, bulbs, remotes and batteries, fluid maintenance items, filters, belts and hoses showing age-appropriate wear, and interior wear consistent with age and mileage;
• Cosmetic imperfections (paint chips, dings, scratches, glass chips not in the driver's line of sight, curb rash) on any listing, and all cosmetic/trim items on unverified listings under Section 2;
• Repairs costing less than the Section 1 thresholds;
• Catalytic converter condition on vehicles over 125,000 miles, unless the converter is missing;
• Aftermarket parts, prior repairs, and paintwork performed to a workmanlike standard, unless the listing affirmatively misstated them;
• Diagnostic trouble codes without an underlying defect meeting Section 1, and conditions arising after the Release Event;
• Anything the buyer knew before bidding, from any source;
• Market value, buyer's remorse, and resale expectations.

14. Listing designations

LaneUpPro uses written designations on the listing itself rather than auction "lights." The designations that affect arbitration are: the Condition Report verification state (verified / seller-attested / not fully verified); No Reserve; the title designations in the Title Policy (Title With Deal / Title Absent, and any brand disclosure); and any written announcement on the listing. The designation state at the moment the Sale forms controls; Apex Auto Group Inc.'s records of the listing at that moment are authoritative.

15. Limited Arbitration designation

A buyer may be designated Limited Arbitration on notice when, over a trailing 3-month period with at least 4 purchases, either its claim rate (claims opened ÷ vehicles purchased) reaches 25% or its average validated payout reaches $250 per vehicle purchased. Apex Auto Group Inc.'s records control the calculation.

A Limited Arbitration buyer may bring claims only for these undisclosed conditions: frame or structural damage, alteration, or certified structural repair; flood damage (found on inspection or in government or insurer records); fire damage; deployed, missing, or inoperative airbags; an inoperative odometer, not-actual-miles, or true-mileage-unknown status; branded, salvage, bonded, insurance, or lemon-law/manufacturer-buyback titles or history; stolen or theft-recovery history or an active theft record; a state-issued VIN plate or kit vehicle; previously Canadian, grey-market, or fuel-converted vehicles; sale on bill of sale, government release, MSO/CO, or repossession papers without a title; biohazard contamination; pending DMV fees or taxes over $100 attached to the vehicle; and any disclosure required by law.

The designation is reviewed each calendar quarter and on request after 90 days of normal activity; a buyer may be designated more than once. Abuse of the claim process (fabricated claims, chargeback misuse) may result in loss of all arbitration rights and termination.

16. Costs, and relationship to other remedies

Filing a claim is free. Inspection costs follow Section 6. A party who files a frivolous claim or a baseless objection may be charged the administrative fee in the Fee Schedule.

Completing this process is a condition precedent to any other proceeding about vehicle condition. Matters this policy does not decide — and enforcement of decisions under it — follow Terms of Service §21. Nothing in this policy limits rights a public buyer cannot lawfully waive; for public-buyer purchases, this process applies first as a practical remedy, and any FTC Buyers Guide controls over conflicting listing text.