ETHICAL POLICY

ETHICAL COMMITMENT

BID4U is dedicated to delivering outstanding customer service based on the highest ethical principles.

FIRST-COME-FIRST-SERVED

All Client representation is provided on a 'First-Come-First-Served' basis to the Client who first contracts BID4U. BID4Uwill represent more than one party, however, BID4U will always purchase the first suitable item on behalf of the Client who first contracted BID4U bid, locate, or negotiate a lot or item, unless BID4U agrees to suspended or terminate their contract.

Example 1:	Where Client C contracts BID4U to locate and purchase a red 2006 Toyota Corolla hatch at Auction on their behalf and Bid 4 U is representing Client A to locate, bid or negotiate the purchase of the same vehicle, Bid 4 U will always purchase the first suitable red Toyota Corolla hatch on behalf of Client A. Once a vehicle is purchased on behalf of Client A, Bid 4 U will purchase the next suitable red 2006 Toyota Corolla hatch on behalf of Client C and so on and so forth.

Example 2:	Where Client B (a Motor Vehicle Dealer who has Contracted with Bid 4 U to regularly purchase motor vehicles on their behalf) enters into a contract with Bid 4 U to purchase vehicles after Client A but before Client C, and requests Bid 4 U to purchase a red 2006 Toyota Corolla hatch on their behalf, after Bid 4 U has contracted with Client C to bid, locate or negotiate purchase the same vehicle, then, in keeping with Bid 4 U 's First-Come-First-Served Policy, Bid 4 U will first locate, bid or negotiate a suitable red 2006 Toyota Corolla hatch for Client C, because Client C entered into a contract for that specific make, model and colour Corolla hatch prior to the request being received from Client B for that specific type of vehicle.

Example 3:	If, however, Client D contracts Bid 4 U to locate, bid or negotiate the purchase of a red 2006 Toyota Corolla hatch after the request for the same vehicle is received from Client B (the Motor Vehicle Dealer) then representation will be provided to Client B prior to Client D.

Where Bid 4 U is represents two or more Clients, all with different Maximum Bids, to locate and purchase the same lot or item at Auction Bid 4 U will adhere to our First-Come-First-Served policy up to the first Client’s Maximum Bid, then the second Client’s Maximum Bid and so on an so forth.

Example 4:

Where Client A, who has a Maximum Bid of $15,000, first contracts Bid 4 U’s to locate and negotiate a red Toyota Corolla Hatch then Client B, who has a Maximum Bid of $17,000, later engages Bid 4 U to locate and negotiate the same vehicle, and Client C, having a Maximum Bid of $16,000, thirdly also engages Bid 4 U to locate and negotiate the same vehicle; Bid 4 U will adhere to our First-Come-First-Served policy, and bid firstly on behalf of Client A up to their Maximum Bid of $15,000.

If bidding surpasses Client A’s Maximum Bid, then Bid 4 U will continue bidding on behalf of Client B up to their Maximum Bid of $17,000.

If however, Bid 4 U’s bid of $15,800 is successful then the vehicle will automatically be purchased on behalf of Client B even though Client C’s $16,000 Maximum Bid was higher. The reason why the purchase would be made on behalf of Client B rather than Client C is because Client B was second in line. Client C, however, would then move into second place – behind Client A.

WHERE A CLIENT SUSPENDS THEIR CONTRACT & A SECOND PARTY CONTRACTS BID 4 U TO PURCHASE THE SAME LOT OR ITEM DURING THE PERIOD OF SUSPENSION

Where a Client requests to suspend their contract due to unforeseen circumstances, BID4U shall, at all times retain absolute discretion to defer, postpone, suspend, renew or extend the contract. This determination will be made on an individual case-by-case basis.

Where BID4U agrees to suspend a contract the Client automatically forfeits their first place position. In other words, they move to the end of the queue.

Where another Client contracts BID4U during the contract suspension period to bid, locate or negotiate the same lot or item, that Client will be elevated to the front of the queue and the first purchase made will be on their behalf.

UNDER-BIDDER ON ONE LOT PRIOR TO THE CLIENT’S OTHER LOT PREFERENCES BECOMING AVAILABLE

Where BID4U is the under-bidder for one lot prior to the Client’s other preferences being offered at auction, BID4U may, at BID4U's discretion, continue bidding on any subsequent lots as they are offered at auction, as if BID4U unsuccessfully bid on the first lot, and BID4U may continue bidding on each subsequent lot until successful or until the hammer price of the lot exceeds the Client’s Maximum Bid. If BID4U is unable to secure one of the Client’s other preferred lots at auction then BID4U will negotiate the purchase of the lot which BID4U was the under-bidder on the Client’s behalf.

Example 5

Where BID4U is the under-bidder for lot 5 then BID4U will continue bidding and bid on lot 10. Should BID4U also become the under-bidder for lot 10 then BID4U will bid on lot 15. If Bid 4 U successfully bids on lot 150 then Bid 4 U will not attempt to negotiate the purchase of lot 50 or lot 100 as the under-bidder. If, however, Bid 4 U is unable to successfully bid on lot 150 then Bid 4 U, as the under-bidder, will negotiate either lot 50 or lot 100 on the Client’s behalf, depending on their preference.

UNDER-BIDDER ON TWO OR MORE LOTS

Where Bid 4 U is the under-bidder on two or more lots Bid 4 U will attempt to negotiate the purchase of the lots as the under-bidder in the Client’s order of preference.

Example 6:

Where Bid 4 U is the under-bidder for lot 50, lot 100 and lot 150 Bid 4 U will first attempt to negotiate lot 50 (the Client's first preference), then lot 150 (the Client's second preference), then lot 100 (the Client's third preference).

In all instances Bid 4 U reserves the right to vary the bidding and negotiation order to meet auction or sale requirements and determine which lot or item closest matches the Client's criteria and accepts no responsibility or liability and offers no warranty whatsoever for decisions made.

PROSPECTIVE CLIENT HAVING A HIGHER MAXIMUM BID THAN AN EXISTING CLIENT'S MAXIMUM BID FOR THE SAME LOT OR ITEM

As previously outlined, Bid 4 U operates on a ‘First-Come-First-Served’ basis and will always represent the first person who first contracted Bid 4 U’s professional bidding, item location or private treaty negotiation services unless a Client (for example Client A with a Maximum Bid of $5,000) either suspends their contract or decides to terminate their Contract with Bid 4 U after being informed by Bid 4 U that another person (person B) has provided a written Maximum Bid of 10% or greater for the same lot or item. The choice of whether to continue or cancel the contract shall always remain with Client.

This policy has been put in place to avoid the unethical situation which could arise should Bid 4 U represent our Client (Client A) (and subsequently charge the relevant fees) where Bid 4 U is aware that there is little chance of success because another person is prepared to bid or spend at least 10% more for the same lot or item.

In all instances, however, the decision to either continue or terminate their contract, without penalty shall rest with the Client. (Client A).

Should another person seek to engage Bid 4 U’s professional services for the same lot or item, Bid 4 U will obtain their Maximum Bid for that lot or item in writing on the appropriate Contract. If the other person’s Maximum Bid is less than 10% under the existing Client's Maximum Bid (for example, person B may have a Maximum Bid of $5,300 versus Client A’s Maximum Bid of $5,000) then Bid 4 U will refuse to enter into the Contract with the other person (person B) and will continue to represent our Client (Client A) and bid, locate or negotiate on our Client’s behalf.

In such instances, Bid 4 U will decline to sign the Contract with the other person (person B) and will simply advise them that Bid 4 U is presently contracted to professionally represent an existing Client for that lot or item. Importantly, Bid 4 U will not disclose our Client’s identity or Maximum Bid under any circumstances.

Where another person provides a written Maximum Bid of 10% or greater for the same lot or item on the appropriate Contact (for example person C has a Maximum Bid of $7,000 – which is 40% greater than Client A’s $5,000 Maximum Bid) then Bid 4 U will contact our Client (Client A), advise them that another person has a Maximum Bid of at least 10% above their Maximum Bid, and obtain their decision as to whether they wish to continue to engage Bid 4 U’s professional services or terminate their Contract with Bid 4 U - without penalty.

The only information Bid 4 U will provide to our Client (Client A) is that another person is prepared to bid or spend at least 10% more for the same lot or item. Once informed, should our existing Client (Client A) decide to continue their Contract with Bid 4 U, then Bid 4 U will simply decline to sign the Contract with the other person (person C), and will advise them that Bid 4 U is already contracted to professionally represent an existing Client for that same lot or item. If, however, the existing Client (Client A) decides to validly terminate their Contract, Bid 4 U shall immediately terminate their Contract, enter into a Contract with the other person (person C) and subsequently provide that person with professional representation and will:-

Fully refund to the Client within 5 Business Days the applicable Attendance or Location Fee and all other fees, expenses and charges held by Bid 4 U, including all money held in trust, and;
Fully refund any Nominated Deposit and Nominated Balance within 5 Business Days, and;
Offer the initial Client (Client A) a 5% discount off their next Attendance Fee or Location Fee upon their next engagement for a similar priced lot or item.

In all instances the following shall apply:-

Bid 4 U will not disclose the identity of one party to any other party or divulge any person’s Maximum Bid under any circumstances.
All Maximum Bids must be obtained in writing on the appropriate Contract.
Bid 4 U shall at all times retain absolute discretion to decline to enter into a Contract with any person, even where the Maximum Bid exceeds or is 10% above an existing Client’s Maximum Bid for any reason whatsoever.
Bid 4 U will only accept a written Maximum Bid from another person on an appropriate Contract where another Contract is in existence for the same lot or item where that written Maximum Bid is received:-
- At least 24 hours prior to the auction or sale commencement time for Perth metropolitan and intrastate auctions or sales;
- At least 48 hours for all interstate auctions and sales;
- At least 72 hours for all overseas auctions and sales.
Where the existing Client (Client A) is unable to make up their mind, or in the opinion of Bid 4 U, takes too long to decide whether to continue or terminate their Contract, their Contract shall continue.

PROSPECTIVE CLIENT HAVING A HIGHER MAXIMUM BID THAN AN EXISTING CLIENT'S MAXIMUM BID FOR MULTIPLES OF THE SAME LOT OR ITEM

Where Bid 4 U is representing two Clients for multiple items then representation and bidding shall be strictly in accordance with our First-Come-First-Served policy as per Example 4 above.

Example 7:	Where Client A engages Bid 4 U to bid on two rock buckets and Client A has a Maximum Bid of $4,000 for one rock bucket and a Maximum Bid of $6,000 for both rock buckets, and Client B has a Maximum Bid of $5,000 but only requires one rock bucket, Bid 4 U will always provide representation in accordance with our First-Come-First-Served policy. That is, firstly on behalf of Client A, then on behalf of Client B and so on and so forth. If Bid 4 U’s bid of $2,000 is successful then the first rock bucket would be purchased on behalf of Client A. Bid 4 U will then exercise our rights as the under-bidder and endeavour to purchase the second rock bucket on behalf of Client A for $2,000 but would go up to Client A’ $4,000 Maximum Bid if necessary. In either case, Client B would miss out.

Example 8:	Bid 4 U will bid on the first rock bucket on behalf of Client A, up to their Maximum Bid or $4,000 but if bidding exceeded Client A’s Maximum Bid of $4,000 then Bid 4 U will continue bidding on behalf of Client B, up to their Maximum Bid of $5,000.

Example 9:	If Bid 4 U’s bid of $4,000 is successful then Bid 4 U will purchase the first rock bucket on behalf of Client A, then bid on the second rock bucket firstly on behalf of Client A (because they are first in line) up to their Maximum Bid of $2,000 ($6,000 Maximum Bid on both rock buckets). Where bidding on the second rock bucket exceeds Client A’s $2,000 Maximum Bid, then Bid 4 U will continue bidding on behalf of Client B, up to their Maximum Bid of $5,000.

Example 10:	If Bid 4 U purchased the first rock bucket on behalf of Client B for $5,000 then Bid 4 U would revert to bidding on the second rock bucket on behalf of Client A up to their Maximum Bid of $4,000. ($4,000 being their Maximum Bid for a single rock bucket).

NEGOTIATING ITEMS BEING SOLD BY EXISTING BID 4 U CLIENTS

Instances occasionally arise where prospective Clients wish to engage Bid 4 U to negotiate a particular item that is being sold by an existing Bid 4 U Client.

Bid 4 U shall at all times retain absolute discretion as to whether or not to provide representation and will make a determination on an individual, case-by-case basis. In all instances, the overarching consideration shall be whether both parties will benefit from the transaction.

This policy has been put in place to avoid any unethical situations arising and to dispel any perceived conflicts of interest.

Factors Bid 4 U will take into consideration include:-

The benefit to both parties
The type, colour and condition of the item
The supply and current availability of the item
The purchasing Client's budget, needs, requirements and timeframe
The selling Client's needs, requirements and timeframe
The factory options and after-market accessories fitted to the vehicle
The 'Spend' on a item. [Defined in Definitions & Interpretations]

Example 11:

Client A may be selling an 2002 silver automatic Holden Barina hatch in excellent condition and Client B contracts Bid 4 U to locate the same make and model vehicle in Good Condition or better on their behalf. The market for 2002 automatic silver Holden Barina hatchbacks in Good or better condition is extremely limited.

Moreover, Client A may be desirous to sell the vehicle quickly due to personal circumstances whilst our Client B may also need to purchase a vehicle as soon as possible. In such cases, Bid 4 U would be doing a disservice both parties by not endeavouring to facilitate the sale and purchase of the vehicle.

Where representation is provided, that representation shall be delivered strictly in accordance with this policy.

Bid 4 U will not forcefully and aggressively negotiate the purchase. Rather, Bid 4 U will adopt the position of an impartial mediator and facilitator.

Bid 4 U will provide both parties with the Red Book recommended wholesale and Retail prices for the vehicle as well as copies (subject to authorisation) of any previous valuation appraisals conducted.

Bid 4 U will not disclose the identity of either party to the other party during negotiations.

Bid 4 U will not divulge a Client's Maximum Bid under any circumstances.

Bid 4 U will not relate personal conversations held with one Client to the other Client.

From the outset, Bid 4 U will advise the contracting party that the item is being sold by an existing Bid 4 U Client and stipulate that representation will only be provided strictly in accordance with this ethical policy.

Similarly, Bid 4 U will advise the existing Client (seller) that the person Bid 4 U is representing is a Client and that representation will only be provided strictly in accordance with this ethical policy.

Our impartiality will be highlighted to both parties.

Bid 4 U will conduct an honest appraisal of the item, as if the item was being sold by a non-Bid 4 U Client, and will provide both parties with an identical written copy of the findings.

Where a Competitive Market Analysis is conducted, Bid 4 U will provide both parties with identical copies of the analysis in writing.

Bid 4 U will only facilitate the purchase where the appraisal meets the purchasing Client's requirements.

Bid 4 U will purchase the item only where both parties agree on the proposed price and where the final negotiated price is considered by Bid 4 U to be fair, just and reasonable and only where the final negotiated price is not less than the minimum Liquidation Value (Auction Sale Price) and not more than the maximum Fair Market Value in Continued Use (Private Sale Price) being not less than the 80% of the difference between the wholesale and retail price of the vehicle including factory options and aftermarket fitted accessories but less than any Spend Consideration.

Example 12:	Where the minimum Liquidation Value (Auction Sale Price) of a vehicle in Good Condition including factory options such as; air-conditioning, is $14,000 and the maximum Fair Market Value in Continued Use (Private Sale Price) is $18,000, the wholesale price is $15,000 and the retail price is $20,000, then Bid 4 U will only facilitate the purchase of the vehicle where the purchase price is not less than $13,000 and not more than $19,000 (80% of the $4,000 difference between $20,000 and $15,000, ie; $1,000) and even then, only where the final negotiated price is considered by Bid 4 U and both parties to be fair, just and reasonable.

Example 13:	Given the above scenario, where the Spend Consideration for a replacement set of tyres is $1,000 Bid 4 U will only facilitate the purchase of the vehicle where the purchase price is not less than $12,000 ($13,000 less the $1,000 Spend Consideration) and not more than $18,000 (80% of the $4,000 difference between $20,000 and $15,000, ie; $1,000 less the $1,000 Spend Consideration) and even then, only where the final negotiated price is considered by Bid 4 U and both parties to be fair, just and reasonable.

EMPLOYEE REPRESENTATION

BID4U will provide professional representation to employees:

Strictly in accordance with our Ethical Policy
Like all other Clients on a First-Come-First-Served basis
The employee must enter into a Contract with BID4U the same as any other person
The employee’s Maximum Bid, like all other clients, shall be treated as strictly confidential and not disclosed to any other party
A supervisor must represent the employee and bid, locate or negotiate the lot or item on their behalf
BID4U always retains absolute discretion to refuse to enter into a contract with an employee for any reason

ETHICAL COMMITMENT TO AUCTIONEERS

BID4U is often approached at auction viewings and auctions by members at the public seeking advice, including price estimations. As part of BID4U’s ethical commitment to Auctioneers as well as to our Clients, BID4U will not, under any circumstances, provide advice, including price estimations or accident damage information to members of the public attending auction viewings and auctions, and will, in all instances, direct specific inquiries to the Auctioneer.