Member Registration
Rules of SOCOCARA Auction Chapter 1 - General Provisions Article 1 (Name of Auction) The car auction sponsored by Hanamaru Corporation (hereinafter referred to as "Hanamaru") is "SOCOCARA Auction". Article 2 (Qualification for Participation) Individuals and corporations who are qualified by Hanamaru (hereinafter referred to as each a "Member" and collectively the "Members") are allowed to participate in the SOCOCARA Auction. Article 3 (Operation and Management) Hanamaru is solely entitled to and responsible for the operation and management of the SOCOCARA Auction. Article 4 (Intellectual Property Rights) Hanamaru exclusively owns all intellectual property rights in and right to use the registered data of vehicles to be auctioned at the SOCOCARA Auction, and any Member or third party is prohibited to make use of the data without prior permission from Hanamaru. Article 5 (Confidentiality) Any Member shall not disclose or leak to any third party including but not limited to the Member's customers any confidential technical or commercial information, personal information, or privacy-related information which is obtained through participation in the SOCOCARA Auction. Article 6 (Handling of Member's Information) In order for the SOCOCARA Auction to accomplish its objectives, the Members shall authorize Hanamaru to disclose to third parties including Hanamaru's subcontractors and/or business partners, their information such as; name, trade name, address/company address, phone number, email address, mobile phone number, mobile phone email address, transaction history, involvement in odometer tampering, late payment records, history of expulsion, bankruptcy petition, violation records of the Antique Dealing Act and any other information that Hanamaru obtains in accordance with the rules herein. 2. Notwithstanding the foregoing, the Members shall agree that the information applicable to personal information is handled in accordance with the "Statements regarding Personal Information" which is separately publicized by Hanamaru. Article 7 (Exemption of Liability) In the event that a Member suffers any of the following damages during Hanamaru's operation and management of the SOCOCARA Auction, Hanamaru is not liable for indemnifying the damage: (1) Damage resulting from the failure of Hanamaru's or its business partner's host computer, or any hardware or software attached to the host computer, (2) Damage caused by the Member's computer, its software or peripheral equipment, (3) Damage resulting from a problem with the Internet link or Internet service provider, (4) Damage resulting from discontinuation or suspension of the auction service which Hanamaru judges on its sole discretion to be inevitable for repair, maintenance or management of the system, (5) Damage resulting from Member's faulty operation or management (6) Damage resulting from leakage or divulgence of Member's ID, password, or user ID, (7) Damage caused by viruses, spyware, etc. infected through the use of the Internet or email, (8) Damage caused by natural disasters including lightning, man-made disasters, or any other force majeure events, and (9) Damage resulting from any other causes which Hanamaru is not responsible for. 2. In the event that a Member suffers any damage due to any reason(s) attributable to Hanamaru, regardless of the reason(s) Hanamaru is liable for compensation for the damage not exceeding the total amount of all handling fees for the specific deal which caused the damage. 3. Hanamaru may, without prior notification to the Members, change the contents and specifications of services and programs which Hanamaru provides to the Members (including but not limited to the programs offered through the Internet and the services provided at auction sites). Hanamaru is not liable for any consequential damages or losses which any Member may suffer due to the change. Article 8 (Handling of Disputes) In the event that a dispute arises in conjunction with the rules set forth herein, Hanamaru is responsible for making its best effort to settle the dispute on a neutral and impartial ground by reconciling the interests of the Members and affiliated auction site involved in the dispute. If the reconciliation does not settle the dispute, Hanamaru is entitled to make a ruling, which all parties involved shall abide by. Article 9 (Revision of Rules) Hanamaru may revise any of the rules set forth herein whenever it judges that the revision is necessary. In such a case, the content of the revision shall be publicized on the SOCOCARA Auction website. The revised rule(s) shall be applicable to all deals made on and after the effective date of the revision and all deals made before the effective date of the revision shall remain compliant with the rules before the revision. Article 10 (Number of Days) The number of days used in the rules herein excludes Sundays, national holidays and Hanamaru's regular and temporary holidays. Article 11 (Governing Law) The making, validity, interpretation and performance of the rules set forth herein shall be governed by the laws of Japan without the conflict-of-laws principles. Article 12 (Exclusive Jurisdiction). Any dispute arising out of, or relating to the rules set forth herein shall be settled at Osaka District Court as the exclusive agreement jurisdictional court for the first trial. Chapter 2 - Members Article 13 (Rights of Members) The Members are entitled to participate in the SOCOCARA Auction to sell and buy by bidding in accordance with these rules. 2. The Members are entitled to use the following services of the SOCOCARA Auction which are provided by Hanamaru: (1) Detailed data and images of auctioned vehicles, (2) Participation in the SOCOCARA Auction held every Monday through Friday, and (3) Freight arrangements for forwarding and shipping between the bases in Japan Article 14 (Obligations of Members) The Members shall comply with the rules set forth herein and their associated provisions, and shall not bother other Members nor Hanamaru. Article 15 (Membership Requirements) Any company or individual who wishes to hold a membership to participate in the SOCOCARA Auction shall satisfy all of the following requirements: (1) Any applicant for membership shall not be involved or shall not have been involved in any offensive deed to public order and morals, and any deed perpetrated by gangsters or any other anti-social forces, For any corporate applicant, anyone of its board members, employees, stockholders or capital investors shall not be involved or shall not have been involved in any deed perpetrated by gangsters or any other anti-social forces, (2) All legal registrations and notifications required for sale are filed in accordance with the relevant laws, and all approvals and licenses required for sale are obtained or the criteria to obtain them are satisfied, (3) All applicants who wish to participate in the SOCOCARA Auction in Japan are required to hold a secondhand dealer business license for dealing with used cars issued by an appropriate Public Safety Commission, (4) All applicants are required to comply with the rules herein, (5) Any applicant shall not be applicable to any of financial sanctions lists including but not limited to the Economic Sanctions and Target List, OFAC Specially Designated Nationals (SDN) List, OFAC Sanctioned Country List, OFAC Non-SDN Target List and United Nations Consolidated List, (6) All applicants shall be capable of providing Hanamaru with documents which certify fulfillment of the aforementioned requirements or a letter of commitment to ensure the fulfillment and any other documents which Hanamaru considers necessary, and (7) All applicants shall maintain such environments that allow for the Internet connection and email reception with an appropriate email address. Article 16 (Membership Registration) Both individual and corporate applicants who satisfy all Membership Requirements set forth in Article 15 are given a membership qualification when they agree with terms of use and send all necessary information required to fill in on the member registration screen at the SOCOCARA Auction website. Both individual and corporate applicants who are given the membership qualification are qualified as a Member upon completion of the following processes: (1) Each qualified applicant who desires to participate in the SOCOCARA Auction in Japan shall present his or her secondhand dealer business license and ID (a photo copy of his or her driver's license, etc.) (2) Each qualified applicant who desires to participate in the SOCOCARA Auction from outside Japan shall present any ID with which his or her registered membership information can be verified and provide a background check. Article 17 (Participation Contract) Participation contract is deemed to be executed between a Member and Hanamaru when the Member reconfirms the terms and conditions for auctions (for instance, payment method, purchased vehicle removal method) followed by receipt of an ID issued by Hanamaru. Article 18 (First Purchase Fee) First Purchase Fee of 33,000 yen shall be payable to Hanamaru when a Member wins a bid at the SOCOCARA Auction for the first time and makes payment for the bid settlement. Article 19 (ID and Password Management) Each Member is solely responsible for managing his or her ID and Password issued by Hanamaru in a proper manner. 2. In the event that a Member's ID and Password are used by any third party regardless of such reasons as theft, lending or whatsoever, the Member is responsible and liable for the results of bids in which his or her ID and Password are misused, to the same extent as the case of the Member's own use. 3. In the event that a Member becomes aware of the fact or likelihood that his or her ID and Password are leaked to or misused by any third party, the Member shall notify Hanamaru of the incident immediately. Article 20 (Assignment) Any Member shall not assign or collateralize, in whole or in part, his or her membership, rights or obligations under the rules set forth herein to any third party. Article 21 (Member's Prohibited Conduct) The Members are prohibited to commit any of the following activities: (1) Notify Hanamaru of false information on name, point of contact, email address, etc. when registering membership or using the SOCOCARA Auction System (hereinafter referred to as the "Auction System"), (2) Disclose or lend to any third party a membership number, ID, membership card, etc, or commit a name-lending, (3) Ignore a notice, caution, or warning from Hanamaru, (4) Copy or reprint the registration data in the Auction System, (5) Make any advertisement which may undermine other SOCOCARA Auction Members' interests, (6) Interfere with or disturb the normal operation of the Auction System, (7) Commit defamation of character, harassment, intimidation, invasion of privacy, copyright infringement, or any other legal-rights violations to others, (8) Use or provide any data file contaminated by viruses or any other harmful software, (9) Tamper an odometer of vehicles, (10) Make any contact with a seller and/or owner of auctioned vehicles, or any other member involved without permission by Hanamaru, and (11) Commit any other activities which breach this contract, these rules or provisions set forth under these rules. Article 22 (Sanction against Violation) In the event that a Member fails to comply with Article 21 above, Hanamaru may, without prior notice to the Member, take such sanctions against the Member as to restrict his or her rights as set forth in Article 23 or expel him or her from the SOCOCARA Auction as set forth in Article 24 depending on the degree of the breach. In addition, if Hanamaru suffers any damage due to the Member's breaching Article 21, the Member shall compensate Hanamaru for full amount of the damage. Article 23 (Restriction of Member's Rights) Hanamaru may set and change the terms and conditions, and credit limit for the business with any Member. 2. In the event that a Member falls into one or more of the following cases, Hanamaru may restrict the business with the Member: (1) Payment of debt to Hanamaru in accordance with this contract is suspended, (2) The paperwork to change the ownership of a purchased vehicle through bidding at the SOCOCARA Auction does not complete within a predefined period, (3) The Member does not accept or abide by the ruling which Hanamaru made in accordance with these rules to settle a claim or trouble, (4) The Member makes any default of obligation, late payment, violation of these rules or associated provisions including claims and troubles against any of Hanamaru's business partners, and (5) There is any other reason that Hanamaru considers it appropriate to restrict the business with the Member. 3. In addition, in the event that a Member falls into any of the cases defined in the previous section, Hanamaru may impose the following sanctions on the Member in question: (1) Impose a penalty for breach of contract as provided in the attached Annex hereto, (2) Re-set or change the credit limit for the business with the Member, (3) Prohibit any log-in access to the SOCOCARA Auction, (4) Prohibit from making a successful bid, and (5) Prohibit from participating in the SOCOCARA Auction Article 24 (Expulsion) In the event that a Member falls, or is reasonably considered very likely to fall into one or more of the following cases, Hanamaru may, without any formal demand or notice, terminate his or her membership and ID on its sole discretion that he or she is no longer qualified for the membership. (1) Violation of the Antique Dealing Act or revocation of "secondhand dealer business license for dealing with used cars issued by an appropriate Public Safety Commission", (2) Petition in voluntary bankruptcy or liquidation, filing of corporate reorganization proceedings or civil rehabilitation proceedings, or filing of these petitions by any third party, (3) Any issuance of dishonored checks or bills, and subsequent suspension of payment or insolvency, (4) Determination of assignment, change of business or dissolution, (5) Delinquency in payment for a purchased vehicle and other associated charges beyond the due date predetermined by Hanamaru, (6) Breach of any obligations set forth in Article 14 (Obligations of Members) (7) Involvement in any offensive deed to public order and morals, and any deed perpetrated by gangsters or any other anti-social forces, (8) Submission of false information in the membership application form, (9) Disobedience of a ruling for claim settlement, (10) Any conduct that impairs social credibility, (11) Death of a sole proprietor (12) Any activity or conduct which is prohibited in these rules, and (13) Any activity or conduct which is considered inappropriate for the membership. Article 25 (Withdrawal for Convenience) Any member who wishes to withdraw from the SOCOCARA Auction shall notify Hanamaru of his or her intention of the withdrawal no later than one (1) month before the intended withdrawal date by means of a mail, email or FAX with his or her ID and Password explicitly stated. The contract is deemed to be terminated upon receipt of the notification by Hanamaru. Notwithstanding the foregoing, any of the following conditions is applicable, the contract cannot be terminated until the condition(s) in question is resolved: (1) The Member has debts and/or credits to Hanamaru or the SOCOCARA Auction, (2) The member has a vehicle(s) registered for bidding in the SOCOCARA Auction, and (3) The member has a vehicle(s) under negotiation. Article 26 (Notice) In the event that any changes in a Member's trade name, address/company address, representative, phone number, email address, and other information filed at Hanamaru occur, the Member shall notify Hanamaru of the change(s) in a written form along with an evidence of the change no later than fourteen (14) working days after the change(s). If the Member fails to submit the notice of change, Hanamaru may impose restriction of business on the Member. In addition, in the event that the Member's failure to submit the notice of change in a timely manner results in any damage to Hanamaru and/or any other Members, the breaching Member shall compensate all damages. In such a case, Hanamaru is not responsible nor liable for any damage which other Members suffer. Chapter 3 - Auction Article 27 (Form of Auction) The SOCOCARA Auction is performed in two (2) forms, one is an auction operated in the form of Tender (hereinafter referred to as "Tender Auction"), and the other is an auction in the form of bid up auction (hereinafter referred to as "Live Auction"). Article 28 (Bidding Period) The SOCOCARA Auction is open for bidding and closed as follows: (1) Tender Auction is open every Monday through Friday except for national holidays and closes at 12:00 p.m. on Friday. Note that the Tender Auction may be closed temporarily for convenience of Hanamaru. (2) Live Auction is open every Monday through Friday except for national holidays, will be closed in accordance with each live auction closing time scheduled for after 10 am which is displayed on the bidding screen. Note that the closing time may be extended automatically depending on bid situation. 2. Vehicle to be auctioned shall be uploaded to the SOCOCARA Auction website no later than two (2) days prior to the closing day. 3. In the event that the Auction System has a failure or any questions arise in terms of registered information on a vehicle(s) to be auctioned, Hanamaru may cancel the bid for the vehicle(s) in question, or extend or postpone the auction. In such a case, Hanamaru is not responsible or liable for any damages which the Members may suffer. Article 29 (Matters to Be Observed) Since all transactions of the SOCOCARA Auction including determination of a successful bidder, contract price, etc. for an auctioned vehicle are processed with the computer in the Auction System, the Members shall abide by the results derived from the Auction System. Article 30 (Inspection) Although the SOCOCARA Auction discloses the information on vehicles to be auctioned for the Members' reference, Hanamaru does not assure the information and is not responsible for any discrepancy between the inspection result disclosed at the SOCOCARA Auction and the actual performance. 2. The following categories of vehicles are sellable at the SOCOCARA Auction: (1) Unrepaired accident vehicles and disaster-stricken vehicles (2) Spare parts donor vehicles (in principle, the successful bidder for a spare parts donor vehicle must have a license for collection operation). (3) General vehicles 3. Although the SOCOCARA Auction releases, for the Members' reference, the mileage information which was recorded on an analog tachograph of each vehicle to be auctioned at the time of inspection if available, Hanamaru does not assure the information and is not responsible for any discrepancy between the inspection result disclosed at the SOCOCARA Auction and the actual mileage. In addition, the SOCOCARA Auction does not check manufacturing year of each analog tachograph at the inspection. Article 31 (Tender Auciton) In Tender Auction the Members utilize the Auction System to participate in bidding on the SOCOCARA Auction website. 2. A competitive bidding is conducted for each auctioned vehicle by competing for the highest pre-tax price. 3. In principle, bidding price shall be a minimum of 1,000 yen and rounded in increment of 1,000 yen. 4. Bidders may rebid or cancel a bid within the Bidding Period defined by the SOCOCARA Auction. 5. When the bid is closed, if the highest bidding price reaches the seller's reserved price or the seller accepts the highest bidding price even though it does not reach his or her reserved price, it is formally acknowledged that the auctioned vehicle is successfully knocked down at the highest bidding price. If more than two (2) bidders bid the same highest bidding price, the bidder who bid the price first will be awarded. 6. No bids after the Bidding Period are accepted. 7. Bidders are not allowed to change their bidding price or cancel their bid after the bid is closed no matter what the reason may be including data input errors or operation errors except for the case in which the pre-registered information on the auctioned vehicle has been revised before a winner is decided. Article 32 (Live Auction) An auction in the form of Bid up Auction System is called "Live Auction". 2. Only the Members who have no violation records of the articles which provide prohibited acts and conducts in these rules and satisfy any of the following requirements, are allowed to participate in the Live Auction: (1) For new members or companies without transaction records; Hanamaru approval and admission fee is required in order to participate. (2) For new members or companies without transaction records; Hanamaru approval and admission fee payment are required to participate. 3. A competitive bidding is conducted for each auctioned vehicle by competing for the highest pre-tax price for the vehicle, 4. Each auction starts at the minimum bidding price and ascends by a fixed increment, both of which are pre-determined by the seller. 5. When the Bidding Period set by SOCOCARA Auction expires, if the highest bidding price reaches the seller's reserved price which was declared to Hanamaru in advance, it is formally acknowledged that the auctioned vehicle is successfully knocked down at the highest bidding price. 6. Note that the Bidding Period may be extended automatically depending on bid situation. 7. Bidders are not allowed to change their bidding price downward or cancel their bid no matter what the reason may be including data input errors or operation errors. Article 33 (Price Negotiation) 1. In the event that the highest bidding price for an auctioned vehicle does not reach its reserved price by the end of the Bidding Period, the SOCOCARA Auction may allow the seller and bidders for the vehicle to negotiate on price (hereinafter referred to as "After Bid Negotiation"). (1) In the case of Tender Auction, if the seller of an auctioned vehicle requests and the SOCOCARA Auction so decides, the seller and the bidders who bade highest prices for the vehicle may have an After Bid Negotiation outside the scope of the auction. (2) In the case of Live Auctions, only the bidder who bade the highest price may request an After Bid Negotiation no later than one (1) hour after the Bidding Period expires or between 9:15 a.m. and 11:00 a.m. on the following working day if the Bidding Period expires after the Hanamaru's business hour due to automatic extension of the Bidding Period. 2. In the event that the After Bid Negotiation is not settled successfully, Hanamaru may invite all Members to a new price negotiation for the vehicle in the following manner: (1) Price offers from the new bidders are accepted by phone and email on a first-come-first-served basis, then (2) Reception of price offers ends as soon as the seller accepts any of the offered prices 3. If the deal is settled through the After Bid Negotiation or the subsequent price negotiation set forth above, the buyer of the auctioned vehicle is treated as a successful bidder and his or her offered price is treated as a contract price. Article 34 (Prohibited Acts) Hanamaru prohibits the following acts at the SOCOCARA Auction, and may impose a penalty for breach of contract as provided in the attached Annex on the Member who breaches or, is reasonably considered by Hanamaru to breach this article, and expel him or her from the SOCOCARA Auction: (1) Tendering a bid or wining a bid by misusing any name-lending. (2) Lending ID and Password to others, (3) Direct negotiations while bidding, (4) Interference with the operation of the SOCOCARA Auction such as putting an extremely high load on the Auction System. (5) Any other acts which violate any laws, rules and regulations, and (6) Searching for the information on a purchased vehicle from any other party than Hanamaru. Article 35 (Settlement of Disputes) Hanamaru makes its best effort to settle all claims and problems which occur at the SOCOCARA Auction, and may arbitrate any dispute on a neutral and impartial ground or entrust a third party to settle the dispute. 2. All expenses incurred for the arbitration shall be imposed on the parties involved in the dispute according to the burden ratio set forth by Hanamaru or the entrusted third party. Chapter 4 - Successful Bid Article 36 (Sales Contract for Successfully Bidden Vehicle) The sales contract for an auctioned vehicle shall be executed upon Hanamaru's email transmission of a notice of sales contract awarding to the successful bidder for the vehicle elected through the auction or subsequent price negotiation. 2. In the event that the successful bidder cancels the sales contract, Hanamaru may, on its sole discretion, transfer the right to purchase to the second highest price bidder. 3. Hanamaru does not accept any questions regarding contract prices. Article 37 (Cancellation of Successfully Bidden Vehicle) A successful bidder may cancel his or her successful bid only by notifying Hanamaru of his or her intention of cancellation no later than 5:00 p.m. on the working day following his or her successful bid and paying a penalty for cancellation as provided in the attached Annex. Article 38 (Payment after Successful Bid) Successful bidder who received a notice of wining bid shall pay the exact invoiced amount through bank transfer to the account designated by Hanamaru within four (4) calendar days (excluding bank holidays) from invoice date. 2. If the successful bidder fails to make the full payment by the due date set forth in the section above, he or she shall pay a late-payment penalty as provided in the attached Annex. If the payment remains unpaid by the successful bidder after a past due notice is delivered to him or her and none of his or her intention is indicated, then his or her successful bid is deemed to be canceled and a penalty for cancellation in addition to the late-payment penalty accrued up to the deemed cancellation date is imposed on him or her as provided in the attached Annex. 3. The successful bidder who fails to pay the invoiced amount by the due date without indicating any intention shall forfeit a right to make a successful bid for any auctioned vehicle at the SOCOCARA Auction held on and after the fifth (5th) day from the invoice date. 4. Successful bidders shall pay for a bank transfer fee. 5. No checks nor notes are acceptable. 6. Consumption tax is incurred for the contact price for a successfully bidden vehicle and each handling charge. However, if Hanamaru makes an export arrangement, Consumption tax is not incurred for the contact price for the successfully bidden vehicle. 7. Successful bidders shall pay for a recycling fee as separately invoiced by Hanamaru if the recycling fee for the purchased vehicle has been deposited. However, if Hanamaru makes an export arrangement, the recycling fee is not incurred. Article 39 (Transfer of Title) Title to a vehicle purchased at the SOCOCARA Auction is transferred from its seller to its purchaser (a Member who made the successful bid for the vehicle) upon receipt of payment for the vehicle in the bank account which Hanamaru designates. The responsibility for risk of loss of, or damage to the vehicle shall be transferred from the seller to the purchaser at the same time as title to the vehicle is transferred. 2. Hanamaru shall send to the purchaser a set of documents required for paperwork after the successful bid within twenty five (25) working days from the date of receipt of payment in the case of deregistering vehicles, and within thirty one (31) working days for vehicles to change their ownership. 3. The purchaser is not allowed to repair the vehicle or procure any parts for its repair until the set of documents is delivered to him or her. Hanamaru is not liable for any cost or expense incurred to the purchaser until the set of documents is delivered. 4. In the event that delivery of the set of documents is anticipated to be delayed beyond the delivery period set forth in Section 39.2 above, Hanamaru shall notify the purchaser of the delay. In such a case, the purchaser may cancel the purchase of the vehicle but shall bare all costs and expenses spent for repair and procurement of parts, etc. except the expense for land transportation, which is subject to negotiation with Hanamaru. 5. Even if Hanamaru cancels the vehicle for its convenience after title to the vehicle is transferred to the purchaser, Hanamaru bears no liabilities except for pre-determined land transportation fee based on Hanamaru's tariff or actual expense spent by the purchaser. 6. In the event that the purchaser fails to pick up the vehicle within ninety (90) days after title to the vehicle is transferred to the purchaser, it is deemed that the purchaser has waived the title and Hanamaru acquires it. In such a case, the purchaser may not claim for a refund of payment for the vehicle, or compensation for any damage arising out of loss of the title. Article 40 (Pick-up of Vehicle) The purchaser shall pick up the vehicle in exchange for a Vehicle Pick-up Voucher issued by Hanamaru, after the purchaser makes the full payment for the vehicle to the Hanamaru designated bank account. 2. It is the responsibility of the successful bidder (buyer) to pick up and transport the vehicle in compliance with the Road Traffic Act and other laws and regulations, and to pick up and transport the vehicle as if they understood and agreed to the following. (1) Vehicles listed as used vehicles are permitted to be transported by self-propelled vehicles based on the Road Traffic Act and other laws and regulations, but it is strongly recommended to use vehicles carrying truck or tow trucks in consideration of safety. (2) Vehicles other than used vehicles must be transported by vehicle carrying truck or tow trucks to avoid troubles related to transportation. (3) If we determine that the vehicle carrying truck or tow truck used for transportation is clearly insufficiently equipped to transport the subjected vehicle and that transportation is dangerous, we may not hand over it as the responsibility of the successful bidder. In this case, we will not compensate for the cost loss of the successful bidder or its agent. (4) The successful bidder shall bear all responsibility for any troubles that occur between the successful bidder or its agent and a third party during collection and transportation, and we will not be involved at all. 3. Hanamaru is responsible for loading the vehicle on the purchaser's carrier car with a forklift. However, if Hanamaru judges that the loading may involve any risk or danger judging from the condition of the vehicle or the carrier car, Hanamaru may refuse to perform the loading. 4. The purchaser shall inform Hanamaru of a date and time to pick up the vehicle at least one (1) day in advance. 5. If any representative from a transportation company picks up the vehicle on behalf of the purchaser, the purchaser shall send a notice, by fax, to Hanamaru in advance to notify them of the representative's name and his or her company name. 6. Even in the case that such a representative picks up the vehicle on behalf of the purchaser, the purchaser shall have the representative take the Vehicle Pick-up Voucher or its fax copy with him or her, to exchange for the vehicle. 7. The purchaser shall instruct the representative to make a photocopy of his or her driver's license available to provide to Hanamaru. 8. The vehicle must be picked up by the due date specified below according to the type of vehicle, based on the later of the date when we have confirmed that all payments for the vehicle have been made or when we have notified the customer that the vehicle has been transferred to the designated yard. If the vehicle cannot be picked up by the due date, a penalty fee as specified at the end of this document must be paid. (1) For standard vehicles, the due date for pickup shall be within 5 business days after the base date. (2) For trucks and buses with a maximum load capacity of 2 tons or more, the deadline is now within 10 business days. 9. In the event that the purchaser fails to pick up the vehicle within the Successfully Bidden Vehicle Pick-up Period without making a reservation for the parking space, the purchaser is not entitled to participate in any auction thereafter. 10. Requests of inland delivery arrangements or export arrangements must be made within five (5) business days from the "Sold Date". Any request made after the deadline shall be subject to the payment of a penalty fee as specified at the end of this document. 11. A vehicle which is not picked up within the Successfully Bidden Vehicle Pick-up Period with no contact from the purchaser is deemed to be canceled, and Hanamaru may decide how to deal with the vehicle on its sole discretion. In that case, the purchaser shall pay to Hanamaru, without delay, a penalty for late pick-up up to the deemed cancellation date as well as penalty for cancellation as provided in the attached Annex, which are payable to the bank account designated by Hanamaru. 12. Hanamaru shall start making the export arrangement upon receipt of payment for export charges from the purchaser. In the event that the purchaser fails to pay the export charges to Hanamaru by the predetermined deadline, Hanamaru may cancel the vehicle and impose a penalty provided in the attached Annex on the purchaser. 13. If the purchaser exports his or her successfully bidden vehicle overseas, the purchaser shall export it within thirty (30) days from the day following the invoice date in the case of transportation by a conventional vessel, and within sixty (60) days in the case of a container vessel. If the purchaser fails to export the vehicle within these periods, Hanamaru may charge the purchaser a storage fee of 10,000 yen every thirty (30) days after the applicable period or cancel the vehicle followed by charging the purchaser a penalty for cancellation as provided in the attached Annex. 14. If the purchaser exports any of his or her successfully bidden vehicles or any other items, the purchaser shall ensure that they will not be used for proliferation of weapons of mass destruction or any other military purposes, and comply with and take necessary actions to observe the Foreign Exchange and Foreign Trade Control Law in Japan and all relevant foreign trade laws, regulations and precautions established in the importing countries as well as Japan. Article 41 (Automobile Tax for Successfully Bidden Vehicle) Each successful bidder for a standard-sized vehicle with its automobile inspection certificate shall pay the equivalent amount to an automobile tax on a prorated monthly basis from the month following the month of the bid up to March, which is separately invoiced from the invoice for the vehicle. The invoiced amount for the automobile tax will be adjusted depending on the result of registration. 2. Notwithstanding the foregoing, if the successful bidder chooses to deregister or export the vehicle, the automobile tax does not apply. 3. If the ownership of the vehicle is changed, the automobile tax is not refundable regardless of whether the vehicle comes with documents regarding automobile tax return or not. 4. In conjunction with the preceding section above, if the successful bidder deregisters the vehicle within the same fiscal year as the bid, and (1) If the vehicle comes with documents regarding automobile tax return, no automobile tax is refunded, or (2) if the vehicle does not come with documents regarding automobile tax return, and only if the successful bidder submits to Hanamaru any form to certify deregistration of the vehicle, the automobile tax for the vehicle is refunded on a prorated monthly basis from the month following the month of the deregistration up to March in the fiscal year. However, if the successful bidder fails to submit the certificate of deregistration no later than the fifth (5th) day of the month following the month of deregistration, the successful bidder is no longer eligible for the refund. 5. If the successful bidder deregisters the vehicle, and (1) if the vehicle comes with documents regarding automobile tax return, no automobile tax is refunded, or (2) if the vehicle does not come with documents regarding automobile tax return, and only if the successful bidder submits to Hanamaru any form to certify deregistration of the vehicle, the automobile tax for the vehicle is refunded on a prorated monthly basis from the month following the month of the deregistration up to this coming March. However, if the successful bidder fails to submit the certificate of deregistration no later than the fifth (5th) day of the month following the month of deregistration, the successful bidder is no longer eligible for the refund. 6. In the event that the successful bidder fails to change the ownership of the vehicle within a predetermined period set by Hanamaru, the successful bidder is not eligible for the refund of the automotive tax no matter what the reason of the failure may be. 7. Hanamaru does not accept any questions as to whether an auctioned vehicle comes with documents regarding automobile tax return or not. 8. Each Member who makes the successful bid for a light vehicle with its automobile inspection certificate at the SOCOCARA Auction held in March, shall be liable for an automobile tax for the next fiscal year. 9. Applicable to this article only, a fiscal year is the one (1) year period starting on April 1st and ending on March 31st. Article 42 (Notice of Ownership Change and Delay of Ownership Change) Each successful bidder for an auctioned vehicle shall complete paperwork required to change its ownership and provide Hanamaru with a photocopy of its automobile inspection certificate by a deadline set by Hanamaru. The successful bidder will be notified of the deadline when Hanamaru delivers a set of documents necessary for the ownership change. 2. In the event that the successful bidder commits any traffic violation such as illegal parking and exceeding the speed limit, before the paperwork for the ownership change completes, the successful bidder shall pay to Hanamaru a penalty as provided in the attached Annex. 3. In the event that the successful bidder fails to change ownership of the vehicle by the deadline set forth in this article, the successful bidder shall pay to Hanamaru a penalty for the late ownership change as provided in the attached Annex. If ownership of the vehicle remains unchanged in spite of Hanamaru's subsequent warnings, Hanamaru may impose sanctions on him or her, including deletion of his or her member ID, depending on the degree of the delay. In the event that the delay causes any documents for the ownership change to expire their validity and results in reissuance of those documents, the successful bidder shall pay to Hanamaru a penalty as provided in the attached Annex. 4. If any photocopy of the automobile inspection certificate after the ownership change is not delivered to Hanamaru from the successful bidder before the deadline, Hanamaru may make a request for issuance of certificate of current registration and charge a handling fee of 3,000 yen for the successful bidder. In the case of light automobiles, if no photocopy of the automobile inspection certificate after the ownership change is delivered to Hanamaru within sixty (60) days from the day on which Hanamaru sent the set of documents necessary for the ownership change to the successful bidder, Hanamaru may impose a penalty on the successful bidder as provided in the attached Annex or add the penalty to an invoice for the next successfully bidden vehicle. Article 43 (Documents Required for a Successfully Bidden Vehicle) In principle, Hanamaru does not accept any request for re-issuance of documents required for successfully bidden vehicles. 2. Hanamaru does not issue or request to issue any tax payment certificate for light vehicles. 3. Specifically necessitated documents for re-stamping a vehicle identification number, etc. shall be limited to those which were held by the previous owner of the vehicle for changing the number. 4. The successful bidder shall request any other certificates, such as a certificate of manufacture, while Hanamaru provides the successful bidder with information necessary for the request. 5. In the event that the successful bidder requests Hanamaru to reissue documents necessary for the title transfer (including alternative documents to deregistration) due to such reasons as loss and theft, the successful bidder shall pay to Hanamaru a penalty as provided in the attached Annex. In addition, the successful bidder is liable for the same amount of handling charge as the penalty to the seller of the vehicle. Article 44 (Claims) The winning bidder is only eligible to file a complaint if all of the following conditions are met. In cases where the conditions are not followed, no complaints will be accepted, and Hanamaru Co., Ltd. will hold no responsibility for the purchased vehicle. ・If the payment and pickup is made within the due date. ・The condition of the vehicle is maintained the same before pickup. ・The complaint report date is within 5 business days after pick-up date. Article 45 (Dismantling Certificate and Manifest) In the case of spare parts donor vehicles, on request from Hanamaru, a successful bidder of a spare parts donor vehicle shall issue a dismantling certificate and manifest for the vehicle, and send them to Hanamaru no later than the date specified by Hanamaru. Chapter 5 - Rules to Put up for Auction Article 46 (Display for Auction) The Members are allowed to put their items up for sale at the SOCOCARA Auction by using the Auction System and uploading their items in a biddable form to the SOCOCARA Auction website in compliance with the rules set forth by Hanamaru. Article 47 (Criteria for Auction) All items for sale at the SOCOCARA Auction shall comply with all of the following criteria: Hanamaru may, on its sole discretion, reject or delete any vehicle for sale at auction which contains any serious damage, incomplete or improper repair. (1) A seller is a Member who is entitled to sell at the SOCOCARA Auction and capable of preparing all necessary documents to transfer the title to each item for sale, (2) A vehicle to be auctioned is parked in a site in Japan and the person in charge of the parking site has agreed with its removal resulting from sale at auction, (3) No items for sale at auction have any legal issue, (4) No items for sale at auction contain any hazardous material to the human body, (5) No items for sale at auction are disguised from any accident, defect, damage by disaster or submersion under water involved or suffered in the past, as if nothing occurred. (6) Hanamaru judges a vehicle to be adequate for sale at auction from the result of assessment set forth in Article 48. Article 48 (Assessment) Any Member who wishes to put his or her vehicle up for sale at the SOCOCARA Auction shall get the vehicle assessed by one of the following methods prior to the auction: (1) The seller brings his or her vehicle to be auctioned at his or her own risk, to a storage facility designated by Hanamaru, in which Hanamaru makes an assessment of the vehicle, (2) Hanamaru makes an assessment of a vehicle to be auctioned at the location which the seller designates and the vehicle is parked at, and (3) Hanamaru transports a vehicle to be auctioned from the location designated by the seller, to a storage facility which Hanamaru manages, then makes an assessment of the vehicle. Article 49 (Assessment and Handling Fees) In the case that Hanamaru makes an assessment of a vehicle(s) at any location which the seller designates, the seller shall pay to Hanamaru a traveling and assessment fee of 5,000 yen (excluding tax) per trip. In such a case, the number of vehicles to be assessed shall be ten (10) or less. 2. The seller shall pay to Hanamaru an auction fee of 10,000 yen (excluding tax) per vehicle to be auctioned. 3. The seller shall pay to Hanamaru a contingent fee of 12,000 yen (excluding tax) per vehicle to be auctioned if the bid for the vehicle is successful. The seller shall pay to Hanamaru an additional contingent fee of 8,000 yen (excluding tax) per vehicle to be auctioned if the deal is settled through the After Bid Negotiation or the subsequent price negotiation. However, the additional contingent fee set forth above is not applicable if such price negotiations result in an increase of the contract price of 10,000 yen or less. 4. Auction fee for rebidding is not charged to the seller up to the second (2nd) rebidding trial. 5. In the event that a successfully bidden vehicle is canceled due to a default by its successful bidder such as late payment, Hanamaru is responsible for refunding to the seller the auction fee and contingent fee, but not liable for compensation for any consequential damage which the seller suffers due to the cancellation. When the seller puts the canceled vehicle up for sale at the SOCOCARA Auction again, the seller shall be exempt from an auction fee for the canceled vehicle and shall pay to Hanamaru only a contingent fee if the bid is successful. 6. Sellers shall cooperate with, and provide all necessary support to Hanamaru so that Hanamaru can perform its assessment of their vehicles efficiently. In the event that Hanamaru anticipates any difficulty in completing its assessment in an efficient manner, Hanamaru may suspend or postpone its assessment. Even in such a case, however, the seller is liable for an assessment fee regardless of the progress of the assessment in question. Article 50 (Seller's Filing Requirements) Each seller shall file and disclose, at his or her own risk, information about a vehicle for sale on the SOCOCARA Auction website after giving a detailed checkup, inspection and confirmation of the vehicle, referring to the result of the assessment performed by Hanamaru. 2. In the event that the seller finds any incorrect information on the vehicle to be auctioned registered on the SOCOCARA Auction website, the seller shall notify Hanamaru of the incorrect information immediately. 3. The seller shall provide Hanamaru with precise and truthful information on the condition, quality, defects, specifications, equipment/accessories and history of his or her registered vehicle without delay upon a request from Hanamaru. In the event that the seller does not reply to the Hanamaru's request, Hanamaru may delete the registered information of the seller's vehicle in question. 4. The seller shall assure that the registered information on the SOCOCARA Auction website, which the seller filled and Hanamaru added based on the response from the seller is correct and true, and in the event that the seller violates this commitment and Hanamaru suffers any damage resulting from the violation, the seller shall compensate Hanamaru for the damage as provided in the Rules to Handle Claims regarding Registered Auctioned Vehicles attached hereto in addition to paying to Hanamaru a penalty as provided in the attached Annex. 5. The seller is solely responsible for all claims arising out of his or her inadequate filling of information and shall pay to Hanamaru a penalty as provided in the Rules to Handle Claims regarding Registered Auctioned Vehicles, attached hereto, and compensate the successful bidder of the seller's vehicle for the damage suffered by the successful bidder actually. 6. Hanamaru may, on its sole discretion, delete any registration which the seller filed without complying with these rules or any other registration which Hanamaru judges to be inappropriate. 7. The seller is not allowed to bid or make a successful bid, or have any other Member to bid or make a successful bid for the vehicle which the seller put up for sale at the SOCOCARA Auction. 8. In the event that any untrue filling by the seller causes damage to Hanamaru, any other Members, and their customers, regardless of whether the filling is made intentionally or by negligence, the seller is liable for compensation for all damages suffered by all parties involved. Article 51 (Sales Contract for Auctioned Vehicle) A sales contract is deemed to execute when a successful bidder is elected through auction or subsequent negotiations. Article 52 (Payment for Successfully Bidden Vehicle) Hanamaru shall make payment for a successfully bidden vehicle to its seller two (2) days (excluding bank holidays) after its purchaser pays for the vehicle. However, the payment to the seller will be suspended if a set of documents necessary for title transfer is not delivered to Hanamaru from the seller. Article 53 (Delivery of Successfully Bidden Vehicle and Documents for Title Transfer) The seller shall deliver his or her vehicle to its successful bidder within seven (7) days after the following day of execution of the sales contract for the vehicle. 2. The seller shall transport the vehicle in compliance with the Road Traffic Law and all other applicable laws. 3. The seller shall deliver to Hanamaru a seal-registration certificate which is issued on the same month as the month of the sales contract execution and a set of documents required for either of a new registration, transfer registration or deregistration depending on the type of use within three (3) days from the following day of the sales contract execution. 4. In the event that the seller fails to complete delivery of the vehicle and documents by the respective deadline set forth in the previous sections in this article, the seller shall pay to Hanamaru a penalty as provided in the attached Annex. 5. In addition, in the event that the delay in delivery of the vehicle (Section 1) and documents (Section 3) exceeds two (2) weeks, the successful bidder for the vehicle automatically becomes entitled to cancel the purchase of the vehicle. If the successful bidder cancels the vehicle due to the seller's default, the seller shall compensate the successful bidder for any damage which the successful bidder suffers due to delay and cancellation, and the seller shall pay a penalty to Hanamaru as provided in the attached Annex. Article 54 (Automobile Tax for Successfully Bidden Vehicle) Seller is liable for an automobile tax for his or her successfully bidden vehicle, excluding light vehicles, incurred up to the month in which the sales contract for the vehicle is executed. In addition, if the seller does not submit to Hanamaru a deed of transfer of the right to claim automobile tax return, the seller shall pay to Hanamaru the equivalent amount to an automobile tax, which is refunded to the seller when the vehicle is deregistered. 2. The seller is liable for an automobile tax for any light vehicle incurred throughout the fiscal year in which the sales contract for the vehicle is executed. Article 55 (Unpaid Automobile Tax) If the automobile tax is unpaid, the seller shall, within seven (7) calendar days from Hanamaru's peremptory notice to the seller, either provide Hanamaru with a certificate of automobile tax payment or deposit in Hanamaru the equivalent amount to the automobile tax for one (1) year. 2. If the seller fails to discharge his or her obligation set forth in the previous section of this article, the seller shall pay to Hanamaru a penalty as provided in the attached Annex. Article 56 (Cancellation of Auctioned Item after Execution of Sales Contract) Any seller who wishes to cancel his or her item which has been sold at the SOCOCARA Auction, shall pay Hanamaru a penalty as provided in the attached Annex after notifying Hanamaru of his or her intention to cancel no later than 5:00 p.m. on the next working day of its successful bid. Article 57 (Reissuance of Documents for Title Transfer) In the event that a successful bidder requests a seller via Hanamaru to reissue documents necessary for title transfer (including any alternative documents to documents for deregistration) due to such reasons as loss and theft, the seller shall accept the request and reissue the documents. In such a case, the successful bidder shall pay to Hanamaru a penalty as provided in the attached Annex and pay to the seller a handling charge of the same amount as the penalty. Article 58 (Leftover Items) When a successfully bidden vehicle is delivered to its successful bidder, if there are any goods or items left in the vehicle, the seller shall waive the right of their ownership and shall not make any claim no matter how the successful bidder may treat them including disposal. In the event that the successful bidder suffers any damage caused by any goods or items which the seller left or loaded in the vehicle at the time of delivery of the vehicle, the seller shall be liable for compensation for the damage and a handling charge which Hanamaru judges to be reasonable. Article 59 (Claims against Auctioned Vehicle) In the event that Hanamaru receives a claim against an auctioned vehicle which Hanamaru considers serious or applicable to any of the following cases, Hanamaru may cancel the bid or lower the price for the vehicle after notifying the seller of the claim. All expenses incurred in conjunction with the cancellation or price reduction will be charged to the seller. 【ANNEX】 1. Prohibited Acts JPY50,000 (Article 34) 2. Cancellation of Successful bid JPY50,000 (Article 37) 3. Late payment for successful bid(s) JPY3,000 (Article 38 Item 2) *It is charged per day. 4. Cancellation of Successful bid due to late payment 2 and 3 (Article 38 Item 2) 5. Late Pick-Up JPY 10,000 (Article 40 Item 8, 10, 11) *In the event of a missed deadline, a late pickup penalty of ¥10,000 per 5 business days starting from the initial due date will be assessed. 6. Cancellation of Successful bid due to late pick-up JPY100,000 (Article 40 Item 11, 12, 13) 7. Late Delivery / Shipping arrangments JPY3,000 (Article 40 Item 10) *It is charged per day. 8. Illegal acts before changing ownership JPY100,000 (Article 42 Item 2) *Any fine, transpotation expenses, labor expenses, etc. are to be charged separatly. 9. Overdue for ownership change JPY50,000 (Article 42 Item 3) 10. Overdue for ownership change (Light Vehicle) JPY30,000 (Article 42 Item 3) 11. Reissuance fee for necessary documents for ownership change JPY50,000 (Article 42 Item 3, Article43 Item 5) *This fee is transfered to seller(owner of the vehicle).
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