Condition Arbitration Policy

Plug Vehicle Condition Arbitration Policy

1. Purpose of the Arbitration Policy

Ensuring Fair Conflict Resolution: At Plug, our primary objective is to establish a transparent and equitable arbitration process that caters to the needs of both vehicle buyers and sellers using our platform. Should any concerns arise regarding a vehicle's condition, our Terms of Use require both the buyer and seller to resolve the dispute through Plug's arbitration process. We are dedicated to achieving just and balanced outcomes for all legitimate concerns covered by this policy. In instances where federal, state, and local laws conflict with this policy, the applicable laws shall supersede these policies.

Plug's Role in Vehicle Sales: Plug does not make any representations or warranties regarding any vehicle listed or sold. The sales contract, bill of sale, and title transfer are the sole responsibility of the seller and buyer, even if facilitated by Plug. For further information on Plug's title policy, please visit the Plug Title Policy.

2. How and When to Engage in the Plug Arbitration Process

General Procedure: In the event that a buyer receives a vehicle with an undisclosed issue that qualifies for arbitration under this policy, the buyer may initiate the arbitration process by contacting Plug's arbitration team through the Plug platform. Buyers are eligible for arbitration if they have paid for the vehicle and requested arbitration before the expiration of the arbitration window, as described below. Plug will then conduct an investigation into the buyer's claim and determine an appropriate resolution, if necessary.

Timing: Buyers have until the later of the following:

(a) 10 business days after the purchase date (the date when the seller accepts the buyer's bid) or

(b) 2 business days after buyer’s physical receipt of the vehicle, provided that buyer or buyer’s agent collected the vehicle within seven business days of Plug’s receipt of full payment from buyer.

To make a demand for arbitration, referred to as the "Arbitration Window." The first day of this timeframe is the purchase date.

Investigation: In order to conduct a comprehensive investigation of an arbitration claim, Plug may request the buyer to provide evidence and cooperate in diagnosing undisclosed condition issues within a specified timeframe. This may include the following:

  1. Submitting photos or evidence of the vehicle's condition to Plug within two (2) business days of the request.
  2. Transporting the vehicle to a third-party diagnostic facility designated or approved by Plug and providing evidence of the facility's receipt of the vehicle.
  3. Allowing an inspector from Plug or a third-party inspector to examine the vehicle on the buyer's premises..
  4. Providing any other requested evidence.

If the buyer is unable or fails to provide the requested evidence within the specified timeframe, Plug will close the arbitration related to the vehicle, reject the buyer’s claim, and the buyer will not be able to reopen it.

Final Determination: Both the buyer and seller mutually agree that Plug's decision on all arbitration matters is final and binding.

Possible Resolutions to Arbitration: Potential resolutions to arbitration may include payments or credits to the buyer, payment by seller to the buyer for parts and labor expenses based on Plug's determined wholesale rates to repair covered vehicle condition issues as per this policy, canceling the sale, rejection of the buyer’s claims, or other resolutions at Plug's discretion. Typically, where a buyer prevails in the arbitration, Plug will favor payment for parts and labor expenses, at wholesale rates, rather than canceling a transaction. However, Plug may opt to cancel a sale instead of authorizing payment. Plug will not award an amount exceeding the vehicle's purchase price under any circumstances.

One Arbitration Only: It is imperative that the buyer inspects the vehicle upon delivery and reports all issues or concerns regarding the vehicle's condition within one arbitration. Once an arbitration for a specific vehicle is completed and closed by Plug, regardless of the outcome (which may include credits or payments to the buyer, cancellation of the sale, or rejection of the buyer’s claim as explained above), buyer may make no further claims regarding the condition of the vehicle, in arbitration or any other forum  Any claims other than those relating to the vehicle condition are outside the scope of this policy.

Cancellation of Sale: In the event that Plug, at its sole discretion, decides to cancel a sale after the vehicle has been delivered to the buyer, Plug, the seller, or another third party (as determined by Plug) will arrange transportation of the vehicle to an alternate location, with the cost of transportation to be borne by the party whose acts caused the cancellation. The buyer bears the responsibility for the vehicle's safety and security, as well as any damages or theft that may occur until it is transported from the buyer's premises. If the seller’s actions caused the cancellation, and seller (or its designee) fails to remove the vehicle from buyer’s premises within two business days, seller is responsible to buyer for reasonable storage costs until the vehicle is removed from buyer’s premises.  Plug is not responsible for any fees associated with the buyer's or any third party's storage or security of the vehicle until it is removed from the buyer's location.

If a transaction is canceled due to a vehicle condition arbitration claim, Plug may require either the buyer or the seller to facilitate the transfer of ownership to the next buyer, whether through the Plug platform or alternative means. Both the buyer and seller commit to cooperating with such transfers and facilitating the related title paperwork processing. Upon receipt of the required title paperwork from the buyer, Plug will reimburse the buyer for the original vehicle purchase price, buyer’s transportation costs, and the buyer fee paid to Plug, and seller agrees to reimburse Plug for the full amount paid to buyer

3. What Can Be Arbitrated

To initiate arbitration and qualify for a remedy, buyers must satisfy the following criteria:

  1. The defect or concerning condition was not disclosed in the condition report, AutoCheck report, or by the seller or Plug.
  2. The cost to repair the defect exceeds $800, as determined by Plug based on wholesale dealer cost. This includes used, remanufactured, and aftermarket parts, along with a wholesale labor rate of $90. This minimum does not apply to cosmetic damage not disclosed to the buyer.
  3. The defect is not listed in this policy as ineligible for arbitration.

4. Non-Arbitrable Vehicle Condition Issues:

Arbitration is not permitted, and no remedy will be awarded, for any of the following:

  1. Kit vehicles, homemade vehicles, non-factory add-on parts, and modified vehicles are sold "As-Is" and cannot be arbitrated.
  2. noises or conditions inherent or typical to a particular model or manufacturer, unless considered "excessive" by a diagnosing dealership for non-warranty items. OEM dealer warranty guidelines determine whether the condition is excessive.
  3. Issues related to wearable items, regardless of repair cost. Wearable items include, but are not limited to: tires, wipers, brake components, hoses, seals, lubricants, fluids, bulbs, filters, shocks, struts, and suspension.
  4. If the odometer reading has increased by less than 10 miles more than indicated on the Plug Platform at the time of purchase or 150 miles or more than the odometer reading at the time that the vehicle was collected for transport by the buyer or the buyer’s agent.
  5. Mileage discrepancies cannot be arbitrated for vehicles that are Model Year 2010 or older and/or exempt from odometer and title disclosure laws.
  6. Vehicle accessory electrical defects on vehicles four (4) model years old or older.
  7. Leaks of any kind on vehicles that are ten (10) years old or older.
  8. Any issues arising from the vehicle being flooded, submerged, or underwater.
  9. Condition issues mentioned in the original condition report.
  10. Low voltage batteries and related components, regardless of repair cost.
  11. Any issue related to an open manufacturer recall at the time of arbitration that was disclosed in the condition report.
  12. Issues related to aftermarket modifications disclosed by the seller or in the condition report.
  13. Vehicle transportation issues, such as damage during transportation, missing items from the vehicle, or transportation-related delays.
  14. Misrepresentations made by the buyer.
  15. Issues related to the vehicle that have been repaired or altered after the vehicle's sale.

Normal Imperfections: Buyers, as professional used car buyers, should anticipate that vehicles purchased through Plug may have certain imperfections and may require services to prepare them for retail. These issues, listed below, are considered normal and reasonable for wholesale auction purchases and are also not eligible for arbitration claims:

  1. Interior and exterior cleaning and detailing to address dirt, stains, odors, pet hair, gum, and food residue.
  2. Wet-sanding and buffing to address surface-level scratches and blemishes on the exterior.
  3. Seepage that is not considered an active dripping leak.
  4. Reconditioning or replacement of fogged or hazed headlights, fog lights, or tail lamps.
  5. Non-functioning proximity sensors and lane detection sensors.
  6. Repair of any aftermarket accessories.
  7. Removal of decals, bumper stickers, vehicle wraps, and window tint, including potential paint damage.
  8. Checking and potential servicing of power seat functions, power mirrors, keys, and related components.
  9. Issues that can be addressed through existing manufacturer warranties.
  10. Wear and Tear: Normal wear and tear on headlights, window glass, and paint, including minor scratches, moisture behind headlight lenses, and paint chips, should also be expected.

5. Seller's Responsibilities:

Upon receipt of a demand for arbitration from a buyer, Plug will notify the seller and provide a copy of the buyer’s demand.  Seller shall have two business days from receipt of the notice from Plug to provide a response to the buyer’s claims, including any documents or other evidence supporting its response.  Seller agrees to respond to requests for further information from the arbitrator.  Seller will be provided with copies of all documents provided to or reviewed by the arbitrator upon request.

6. Buyer's Responsibilities:

Review Prior to Purchase: Before making an offer to purchase a vehicle through Plug, buyers are responsible for reviewing all condition reports, pictures, and disclosures available on the Plug Platform.

Upon Vehicle Arrival: Buyer must inspect the vehicle immediately upon its arrival at buyer’s location. It is the buyer's responsibility to verify the seller's representations and promptly notify Plug of any discrepancies within the timeframe outlined in this policy.

Odometer Verification: Buyers must verify the odometer reading upon collection, and upon the vehicle's arrival. The odometer reading must match the reading at the time of purchase, as specified in the bill of sale.

No Changes Before Title: If buyers make any changes to the vehicle before receiving the title or before arbitration completion, they will be liable for all work done to the vehicle and any resulting outcomes. Buyers shall not sell the vehicle until they receive the title. Neither the seller nor Plug shall be responsible for any vehicle sales or repairs made by the buyer before receiving the title. Buyers will not be eligible for any arbitration remedy for a vehicle sold by them after purchase and before the resolution of an arbitration claim.

Assumption of Risk and Documentation: Buyers assume all financial responsibility and risk, along with the liability for damage or loss of the vehicle from the point of pick-up (by the buyer or its agent). The buyer or its agent must document any damage at the time of pick-up before removing the vehicle from its location. Plug and the seller will not be liable for any damage not identified in writing at the time of pick-up once the vehicle is moved from its location. Repairs performed before Plug validates the claim will not be covered by arbitration.

7. Buyer's Expectations:

 Certain information on vehicles listed on the Plug Platform are derived from third parties (i.e. not Plug or the seller) and are provided for informational purposes only.  This includes estimates of battery health and repair costs for issues identifiable from photos provided by the seller.  Neither seller nor Plug makes any representations regarding the accuracy of the information derived from these sources and claims based the inaccuracy in this information are barred..

8. Amendment of the Policy:

Plug reserves the right to amend this Arbitration policy at any time. Any such amendments will take effect from the date the revised policy is posted on the Plug website, unless otherwise specified in the policy itself.


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