2005 Code of Ethics and Standards of Practice

TechAutoCareers® Code of Ethics and Standards of Practice for Automotive Sales Consultants.

Effective January 1, 2005

Where the word TechAutoCareers® is used in this Code and Preamble, it shall be deemed to include Automotive Sales Consultants.

While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence.

Preamble

TechAutoCareers® should recognize that the interests of the nation and its citizens require the highest and best use of salesmanship. They require the creation the development of productive industries and farms, and the preservation of a healthful environment.

Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which TechAutoCareers® should dedicate themselves, and for which they should be diligent in preparing themselves. TechAutoCareers®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow TechAutoCareers® a common responsibility for its integrity and honor.

In recognition and appreciation of their obligations to clients, customers, the public, and each other, TechAutoCareers® continuously strive to become and remain informed on issues affecting automotive sales and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the automotive sales profession. TechAutoCareers® having direct personal knowledge of conduct that may violate the Code of Ethics involving misappropriation of client or customer funds or property, willful discrimination, or fraud resulting in substantial economic harm, bring such matters to the attention of the appropriate TechAutoCareers®.

(Adopted 1/05)

Realizing that cooperation with other automotive sales professionals promotes the best interests of those who utilize their services, TechAutoCareers® urge exclusive representation of clients; do not attempt to gain any unfair advantage over their competitors; and they refrain from making unsolicited comments about other practitioners. In instances where their opinion is sought, or where TechAutoCareers® believe that comment is necessary, their opinion is offered in an objective, professional manner, uninfluenced by any personal motivation or potential advantage or gain.

The term TechAutoCareers® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal.

In the interpretation of this obligation, TechAutoCareers® can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, "Whatsoever ye would that others should do to you, do ye even so to them."

Accepting this standard as their own, TechAutoCareers® pledge to observe its spirit in all of their activities and to conduct their business in accordance with the tenets set forth below.

Duties to Clients and Customers

Article 1

When representing a buyer, seller, or other client as an agent, TechAutoCareers® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve TechAutoCareers® of their obligation to treat all parties honestly. When serving a buyer, seller, or other party in a non-agency capacity, TechAutoCareers® remain obligated to treat all parties honestly.

(Adopted 1/05)

Standard of Practice 1-1

TechAutoCareers®, when acting as principals in a sales transaction, remain obligated by the duties imposed by the Code of Ethics.

(Adopted 1/05)

Standard of Practice 1-2

The duties the Code of Ethics imposes are applicable whether TechAutoCareers® are acting as agents or in legally recognized non-agency capacities except that any duty imposed exclusively on agents by law or regulation shall not be imposed by this Code of Ethics on TechAutoCareers® acting in non-agency capacities.

As used in this Code of Ethics, "client" means the person(s) or entity(ies) with whom TechAutoCareers® or a TechAutoCareers®'s firm has an agency or legally recognized non-agency relationship; "customer" means a party to a automotive sales transaction who receives information, services, or benefits but has no contractual relationship with the TechAutoCareers® or the TechAutoCareers®'s firm; "prospect" means a purchaser, seller, who is not subject to a representation relationship with the TechAutoCareers® or TechAutoCareers®'s firm; "agent" means a automotive sales consultant (including brokers and sales associates) acting in an agency relationship as defined by state law or regulation; and "broker" means a automotive sales consultant(including brokers and sales associates) acting as an agent or in a legally recognized non-agency capacity.

(Adopted 1/05)

Standard of Practice 1-3

TechAutoCareers®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.

Standard of Practice 1-4

TechAutoCareers® shall not mislead buyers as to savings or other benefits that might be realized through use of the TechAutoCareers®'s services.

(Adopted 1/05)

Standard of Practice 1-5

TechAutoCareers® may represent the seller and buyer in the same transaction only after full disclosure to and with informed consent of both parties.

(Adopted 1/05)

Standard of Practice 1-6

TechAutoCareers® shall submit offers and counter-offers objectively and as quickly as possible.

(Adopted 1/05)

Standard of Practice 1-7

The obligation of TechAutoCareers® to preserve confidential information (as defined by state law) provided by their clients in the course of any agency relationship or non-agency relationship recognized by law continues after termination of agency relationships or any non-agency relationships recognized by law. TechAutoCareers® shall not knowingly, during or following the termination of professional relationships with their clients:

reveal confidential information of clients; or

use confidential information of clients to the disadvantage of clients; or

use confidential information of clients for the TechAutoCareers®'s advantage or

the advantage of third parties unless:

clients consent after full disclosure; or

TechAutoCareers® are required by court order; or

it is the intention of a client to commit a crime and the information is necessary to prevent the crime; or

it is necessary to defend a TechAutoCareers® or the TechAutoCareers®'s employees or associates against an accusation of wrongful conduct.

Information concerning latent material defects is not considered confidential information under this Code of Ethics.

(Adopted 1/05)

Article 2

TechAutoCareers® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. TechAutoCareers® shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law.

(Adopted 1/05)

Standard of Practice 2-1

TechAutoCareers® shall not be parties to the naming of a false consideration in any document, unless it be the naming of an obviously nominal consideration.

Standard of Practice 2-2

Factors defined as "non-material" by law or regulation or which are expressly referenced in law or regulation, as not being subject to disclosure are considered not "pertinent" for purposes of Article 2.

Article 3

Standard of Practice 3-1

TechAutoCareers® shall not recommend or suggest to a client or a customer the use of services of another organization or business entity in which they have a direct interest without disclosing such interest at the time of the recommendation or suggestion.

Article 4

In a transaction, TechAutoCareers® shall not accept compensation from more than one party, even if permitted by law, without disclosure to all parties and the informed consent of the TechAutoCareers®'s client or clients.

(Adopted 1/05)

Article 5

TechAutoCareers®, for the protection of all parties, shall assure whenever possible that all agreements related to sales transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing.

(Adopted 1/05)

Standard of Practice5-1

For the protection of all parties, TechAutoCareers® shall use reasonable care to ensure that documents pertaining to the purchase, sale, or lease of vehicles are kept current through the use of written extensions or amendments.

(Adopted 1/05)

Duties to the Public

Article 6

TechAutoCareers® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, or national origin. TechAutoCareers® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin.

(Adopted 1/05)

TechAutoCareers®, in their automotive sales employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, or national origin.

(Adopted 1/05)

Standard of Practice 6-2

TechAutoCareers® shall not print, display or circulate any statement or advertisement with respect to selling a vehicle that indicates any preference, limitations or discrimination based on race, color, religion, sex, handicap, familial status, or national origin.

(Adopted 1/05)

Article 7

The services which TechAutoCareers® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific automotive sales disciplines in which they engage.

TechAutoCareers® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.

(Adopted 1/05)

Standard of Practice 7-1

When TechAutoCareers® provide consultant services to clients which involve advice or counsel for a fee (not a commission), such advice shall be rendered in an objective manner and the fee shall not be contingent on the substance of the advice or counsel given. If brokerage or transaction services are to be provided in addition to consultant services, a separate compensation may be paid with prior agreement between the client and TechAutoCareers®.

(Adopted 1/05)

Standard of Practice 7-2

The competency required by Article 11 relates to services contracted for between TechAutoCareers® and their clients or customers; the duties expressly imposed by the Code of Ethics; and the duties imposed by law or regulation.

(Adopted 1/05)

Article 8

TechAutoCareers® shall be careful at all times to present a true picture in their advertising and representations to the public. TechAutoCareers® shall also ensure that their professional status (e.g., broker, appraiser, sales manager, etc.) or status as TechAutoCareers® is clearly identifiable in any such advertising.

(Adopted 1/05)

Standard of Practice 8-1

TechAutoCareers® may use the term "free" and similar terms in their advertising and in other representations provided that all terms governing availability of the offered product or service are clearly disclosed at the same time.

(Adopted 1/05)

Standard of Practice 8-2

TechAutoCareers® may represent their services as "free" or without cost even if they expect to receive compensation from a source other than their client provided that the potential for the TechAutoCareers® to obtain a benefit from a third party is clearly disclosed at the same time.

(Adopted 1/05)

Standard of Practice 8-3

The offering of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease is not, in itself, unethical even if receipt of the benefit is contingent on listing, selling, purchasing, or leasing through the TechAutoCareers® making the offer. However, TechAutoCareers® must exercise care and candor in any such advertising or other public or private representations so that any party interested in receiving or otherwise benefiting from the TechAutoCareers®'s offer will have clear, thorough, advance understanding of all the terms and conditions of the offer. The offering of any inducements to do business is subject to the limitations and restrictions of state law and the ethical obligations established by any applicable Standard of Practice.

(Adopted 1/05)

Standard of Practice 8-4

TechAutoCareers® shall not offer for sale/lease or advertise property without authority. When acting as sales consultants or as subagents, TechAutoCareers® shall not quote a price different from that agreed upon with the seller/dealer.

(Adopted 1/05)

Standard of Practice 8-5

TechAutoCareers® shall not advertise nor permit any person employed by or affiliated with them to advertise listed property without disclosing the name of the firm.

(Adopted 1/05)

Standard of Practice 8-6

TechAutoCareers®, when advertising vehicles for sale/lease in which they have an ownership interest, shall disclose their status as both owners and as TechAutoCareers® or automotive sales consultants.

(Adopted 1/05)

Standard of Practice 8-7

Only TechAutoCareers® who participated in the transaction as the sales consultant or cooperating broker (selling broker) may claim to have "sold" the property. Prior to closing, a cooperating consultant may post a "sold" sign only with the consent of the sales consultant.

(Adopted 1/05)

Article 9

TechAutoCareers® shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it.

Article 10

If charged with unethical practice or asked to present evidence or to cooperate in any other way, in any professional standards proceeding or investigation, TechAutoCareers® shall place all pertinent facts before the proper tribunals of the Member Board or affiliated institute, society, or council in which membership is held and shall take no action to disrupt or obstruct such processes.

(Adopted 1/05)

Article 11

TechAutoCareers® shall not knowingly or recklessly make false or misleading statements about competitors, their businesses, or their business practices.

(Adopted 1/05)

Standard of Practice 11-1

TechAutoCareers® shall not knowingly or recklessly file false or unfounded ethics complaints.

(Adopted 1/05)

Article 12

TechAutoCareers® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other TechAutoCareers® have with clients.

(Adopted 1/05)

Standard of Practice 12-1

Article 12is not intended to prohibit aggressive or innovative business practices which are otherwise ethical and does not prohibit disagreements with other TechAutoCareers® involving commission, fees, compensation or other forms of payment or expenses.

(Adopted 1/05)

Standard of Practice 12-2

Article 12 does not preclude TechAutoCareers® from making general announcements to prospects describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another TechAutoCareers®. A general telephone canvass, general mailing or distribution addressed to all prospects in a given geographical area or in a given profession, business, club, or organization, or other classification or group is deemed "general" for purposes of this standard.

(Adopted 1/05)

Article 12 is intended to recognize as unethical two basic types of solicitations:

First, telephone or personal solicitations of property owners who have been identified by a multiple listing compilation, or other information service as having exclusively listed their property with another TechAutoCareers®; and

Second, mail or other forms of written solicitations of prospects whose properties are exclusively listed with another TechAutoCareers® when such solicitations are not part of a general mailing but are directed specifically to property owners identified through compilations of current listings, or other sources of information required and or Multiple Listing Service rules to be made available to other TechAutoCareers® under offers of sub agency or cooperation.

(Adopted 1/05)

Standard of Practice 12-3

The fact that a prospect has retained a TechAutoCareers® as an exclusive representative or exclusive broker in one or more past transactions does not preclude other TechAutoCareers® from seeking such prospect's future business.

(Adopted 1/05)

Standard of Practice 12-4

The fact that an exclusive agreement has been entered into with a TechAutoCareers® shall not preclude or inhibit any other TechAutoCareers® from entering into a similar agreement after the expiration of the prior agreement.

(Adopted 1/05)

Standard of Practice 12-5

TechAutoCareers®, prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of automotive sales service.

(Adopted 1/05)

Standard of Practice 12-6

TechAutoCareers® are free to enter into contractual relationships or to negotiate with sellers, buyers/or others who are not subject to an exclusive agreement but shall not knowingly obligate them to pay more than one commission except with their informed consent.

(Adopted 1/05)

Standard of Practice 12-7

TechAutoCareers® shall not use information obtained from listing brokers through offers to cooperate made through multiple listing services or through other offers of cooperation to refer listing brokers' clients to other brokers or to create buyer relationships with listing brokers' clients, unless such use is authorized by listing brokers.

(Adopted 1/05)

Standard of Practice 12-8

Signs giving notice of property for sale, lease, or exchange shall not be placed on property without consent of the seller.

(Adopted 1/05)

Standard of Practice 12-9

TechAutoCareers®, prior to or after terminating their relationship with their current firm, shall not induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm. This does not preclude TechAutoCareers® (principals) from establishing agreements with their associated licensees governing assign ability of exclusive agreements.

(Adopted 1/05)

Article13

In the event of contractual disputes or specific non-contractual disputes as defined in Standard of Practice 13-4 between TechAutoCareers® (principals) associated with different firms, arising out of their relationship as TechAutoCareers®, the TechAutoCareers® shall submit the dispute to arbitration in accordance with the regulations of their Board or Boards rather than litigate the matter.

In the event clients of TechAutoCareers® wish to arbitrate contractual disputes arising out of automotive sales transactions, TechAutoCareers® shall arbitrate those disputes in accordance with the regulations of their Board, provided the clients agree to be bound by the decision.

The obligation to participate in arbitration contemplated by this Article includes the obligation of TechAutoCareers® (principals) to cause their firms to arbitrate and be bound by any award.

(Adopted 1/05)

Standard of Practice 13-1

The filing of litigation and refusal to withdraw from it by TechAutoCareers® in an abatable matter constitutes a refusal to arbitrate.

(Adopted 1/05)

Standard of Practice 13-2

Article 17 does not require TechAutoCareers® to arbitrate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to arbitrate before the Board.

(Adopted 1/05)

Standard of Practice 13-3

TechAutoCareers®, when acting solely as principals in an automotive sales transaction, are not obligated to arbitrate disputes with other TechAutoCareers® absent a specific written agreement to the contrary.

(Adopted 1/05)

Standard of Practice 13-4

Specific non-contractual disputes that are subject to arbitration pursuant to Article 17 are:

Where a listing broker has compensated a cooperating broker and another cooperating broker subsequently claims to be the procuring cause of the sale or lease. In such cases the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.

(Adopted 1/05)

Where two or more listing brokers claim entitlement to compensation pursuant to open listings with a seller who agrees to participate in arbitration (or who requests arbitration) and who agrees to be bound by the decision. In cases where one of the listing brokers have been compensated by the seller, the other listing broker, as complainant, may name the first listing broker as respondent and arbitration may proceed between the brokers.

(Adopted 1/05)

Where a buyer or sales representative is compensated by the seller, and not by the listing broker, and the listing broker, as a result, reduces the commission owed by the seller and, subsequent to such actions, claims to be the procuring cause of sale or lease. In such cases arbitration shall be between the listing broker and the buyer or sales representative and the amount in dispute is limited to the amount of the reduction of commission to which the listing broker agreed.

(Adopted 1/05)

The Code of Ethics was adopted in January, 2005.

Explanatory Notes the reader should be aware of the following policies, which have been approved by TechAutoCareers®

In filing a charge of an alleged violation of the Code of Ethics by a TechAutoCareers®, the charge must read as an alleged violation of one or more Articles of the Code. Standards of Practice may be cited in support of the charge.

The Standards of Practice serve to clarify the ethical obligations imposed by the various Articles and supplement, and do not substitute for, the Case Interpretations in Interpretations of the Code of Ethics.

Modifications to existing Standards of Practice and additional new Standards of Practice are approved from time to time. Readers are cautioned to ensure that the most recent publications are utilized.

TechAutoCareers.com® (TAC) members are highlighting the commitment that dealers have made to ethics and customer service in a time of corporate mistrust.

Our primary goal: To have all TechAutoCareers.com® (TAC) members display the Code of Ethics in their showrooms.

Expanded to reflect today's business conditions. Display the elegant poster in your showroom to show your commitment to high ethical standards, suitable for framing.

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