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, or airbag 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 9;
• 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 11 (no repairs before validation, no resale, no registration transfer, no export).

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.

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 Sale Date, with the Sale Date counting as day one.

Transport extension. If the vehicle is delivered by an independent third-party carrier and the documented delivery date (bill of lading or carrier confirmation) is after day 7, the window extends to 2 Business Days after documented delivery, but never beyond 20 calendar days after the Sale Date. Because all transport is performed by independent carriers (LaneUpPro has no transport affiliate), no further extension is available for transport delay; buyers who anticipate long hauls should schedule pickup accordingly.

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 12 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.

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 $60 per flag hour 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.

Low-value cap. For vehicles with a sale price of $3,500 or less, total repair payments are capped at 40% 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.

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 is refunded in full through the original payment method or, where that is impossible, by manual transfer or Platform Balance credit. Fee treatment follows the Fee Schedule.
• Return transport. The seller pays return transportation to the seller's location (by an independent carrier). If the buyer caused the cancellation to be necessary in part (for example, use beyond Section 11), costs may be allocated between the parties in the decision.
• 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;
• 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;
• 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 whose claim rate is abnormally high relative to platform norms (measured over its trailing 20 purchases or 6 months, whichever is larger) may be designated Limited Arbitration on notice. A Limited Arbitration buyer may bring claims only for undisclosed frame, flood, fire, airbag, odometer, and title-brand conditions. The designation is reviewed on request after 90 days of normal activity. 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.