WHEREAS, these auctions are concerned regarding the potential that such nondisclosure would violate NAAAs Code of Ethics; and

WHEREAS, as a result of subsequent investigation and deliberation, the Resolution Regarding Ethics of Payments of Rebates to Sellers dated October 6, 2001, should be revised.

NOW THEREFORE, be it resolved by the NAAA Board of Directors.

1. An auction should disclose on appropriate auction documents the actual amount of administrative and operational fees charged in connection with the sale of a vehicle consigned to it. An auctions listing of such fees without also disclosing on appropriate auction documents any rebate, volume discount, or other consideration provided to the consignor of a vehicle owned by a third party that reduces the amount of the listed fees violates the NAAA code of ethics in several respects, including:

• Failing to be fair to both sellers and buyers.
• Failing to protect the owners interest as the member would its own.
• Failing to be honest and ethical in all dealings with customers and failing to maintain specific documentation that directly supports the actual bid sale price and all of the administrative and operational fees that are charged.
• Bringing disrepute to the auto auction business.
• Failing to expose or halt any scheme designed to deceive or defraud any party that may be responsible for a deficit resulting from the sale of any vehicle through NAAA member auctions.

2. It does not violate the NAAAs Code of Ethics to negotiate volume discounts with, charge reduced fees to or pay rebates or other consideration to consignors or buyers so long as they are adequately disclosed on appropriate auction documents.

3. NAAA will prepare guidelines for compliance by NAAA members with this Revised Resolution.

Dated this 29th day of April, 2002