Auto Rebuilder’s Association of Greater Syracuse Inc



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ARA COLLISION REPAIR CODE OF ETHICS

Auto Rebuilder’s Association of Greater Syracuse Inc.

Business office: 638 West Genesee St. Syracuse, NY 13204

President: Jeff Lyman- jefflyman@

Vice President: P. J. Schmid - pjs@

Secretary: John Coleman -durimix@

Treasurer: Mike Orso - nickorso@

NYSACTA Representative- Mike Orso

Of Legal Council: J. R. Talarico Esq.- jrt@

INTRODUCTION

1) Definitions;

2) Ethical considerations;

3) Disciplinary;

4) Rules;

5) Certification;

With grateful acknowledgment: E. L. Eversman, J.D.

Created by E. L. Eversman, J.D.

© 2007-2008 ACAR and Vehicle Information Services, Inc.

INDEX- As of 6-1-2009

Page 1- Preface- Immediate Board-Contacts-Introduction

Page 2- Outline- Purpose

Page 3-4 Definitions

Page 5- Licensure, Registration, and Business Insurance

Page 6- Organization, Facility and Equipment

Page 7-8-9 Repair Contract, Obligations, Disciplinary Rules

Page 10 Ethical Considerations for Collision Repair-Training, Education, Background

Page 11 Peer Review Board PRB- Peer Review Panel PRP Qualifications

Page 12-Misconduct

Page 13-14 Disciplinary

Page 15- Organization Participation Plain Language

Page 16-17 Application for Certification

Page 18-19 Complaint Form

Page 20 Penalties

Page 21 Appeal

ARA Collision Repair Code of Ethics

The laws and provision of the NYS Department of Motors Vehicles Repair Shop Act of 1975 first governs the activities of a collision repair service in NY. All activities and behavior may not fall under the guidelines of “violation” according to Regulation.

In a Pro-Active responsible effort to adopt the following code of ethics. The ARA of Greater Syracuse adopts this code of ethics and let all persons know of it’s existence.

More than any other profession, the profession of autobody repair can affect the safety and well being of many people in terms of highway safety. When a Doctor makes a mistake it may kill one person. An autobody repairer who produces a faulty unsafe repair it could send a vehicle back on the highway to ultimately hurt and kill many people. Yet a hairdresser requires state testing and licensing to cut hair!

The National Highway Safety Administration (NHTSA) is one of the largest federal agencies that establishes rules for the manufacture of motor vehicles allowed to travel the highways of the US. The state department of motor vehicles then adopts these rules as standards. Vehicles are designed, built, tested and only allowed to drive on our nations highways if they meet exacting safety standards. Why then would any person in a fiduciary position, entrusted by consumers to remanufacture damaged vehicles, cut corners in attempt to re-engineer a damaged motor vehicle? This Professional Code of Ethics outlines conduct and disciplinary procedures including but not limited to the NY DMV Regulations.

The collision industry and collision repairers have the lives, safety and financial interest of the motoring public in their hands. Recognizing that consumers typically have no experience with collision repairs, they place their trust and confidence in professional collision repairers to ensure that vehicles are safe and properly

repaired after a crash. The ARA also recognizes most collision repairs are paid by 3rd party insurance contracts purchased by the consumer to fund repair or replacement in the event crash damage occurs. The members of this association commit to be advocates on behalf of their consumer customers as far as consumer laws and individual contract agreement allow.

It takes knowledge, skill, and expertise to properly manage and repair a damaged

vehicle and to manage and process insurance claims on behalf of consumers. Collision repairers are often the only advocate consumers have.

To ensure that consumers receive high quality repairs, to promote consumer confidence in those repairs, and receive the benefit entitlement owed to consumers. The ARA and its member collision repairers agree to conform to these ethical practices and standards.

A Collision repair facility, corporation or owner whose activities conflicts with established rules of this professional code may be punishable by disciplinary measures provided herein and agrees to accept the findings of the PRB without dispute past the Appeal Process. No legal recourse or remedy allowed.

Definitions

Agreed for the purpose of this document and circumstance:

1) “Back-up Shop” is another shop an insurance company or appraiser identifies as an insurance selected collision shop to support the price and process the insurer has proposed for repair.

2) “Bate and Switch” is the practice of advertising or offering a consumer an item or service of specific value and then substituting a product or service of a lessor or greater value or price.

3) “Best Practice” in the absence of written manufacturer advice. Completing a repair task in a proven repeatable manner with dependable expected results.

4) “Breach of Warranty” occurs when failing or refusing to honor the written promise to re-repair a covered defective product or service as agreed.

5) “Breach of Contract” is a legal concept in which a binding agreement , bargained-for exchange, is not honored by one or more of the parties to the contract by non-performance or unilaterail deviation of the term set forth in the agreement.

6) “Coersion” is the activity of compelling a person or manipulating them to behave in an involuntary way through action or use of threats, intimidation, deceipt, trickery, or some other form of pressure or force.

7) “Collision Repairer” shall mean any person or business engaged in

disassembling, diagnosing, reconstructing, or repairing vehicles that

have sustained physical or cosmetic damage.

8) “Collision Repair Facility” shall mean any business that receives

compensation for the activities of collision repair and complies with all local,

state and federal laws.

9) “Consumer” is defined as any private individual that has purchased or leased a

vehicle primarily for personal or household use.

10) “Consumer Fraud” an intentional deception made for personal gain or intended to deceive a consumer of goods or services.

11) “ Contract of Repair”is a written document outlining specific duties and responsibilities of the consumer and the repair facility. A contract is not the estimate or work order.

12) “Cost Shifting” is the practice of converting the dollar value of parts into labor. The practice will be considered diceptive if conducted without the consumers written approval and documentation by way of itemized invoice.

13)“Customer” is defined as the registered owner of the vehicle, or the Designated Representative of either.

14) “Deceptive Business Practice” encompasses fraud by misrepresentation and oppressive or unconscionable acts or practices by business, often against consumers or other businesses as prohibited by consumer law, in NY Section § GB 349.

15) “Designated Representative” (DR) is defined as any person with knowledge

that has been given the legal right to act on behalf of the vehicle owner/consumer as provided by NYS Regulation 64. Requires a single executed document that complies with the Regulation 64, duly executed by the true vehicle owner(s) or consumer(s). The DR creates a fiduciary relationship between the owner and DR whereby the DR acts as an authority on behalf of the consumer.

16) “Damage Analysis” is defined as the written document of a thorough review of

the damage sustained by a vehicle and the proposed plan to repair the vehicle.

17) “Damage Analyst” is defined as any person employed by a collision repair

facility technically qualified in the practice of preparing damage analyses.

18) “Estimate” is defined as a preliminary verbal or written identification of damage or vehicle harm and expected repair costs.

19) “Final Invoice” is an itemized document produced at the end of the repair that summarizes all of the repairs complete, indicating the status of each part as NEW, USED, REMANUFACTURED, NON-OEM. as required by state law. May not match exactly the estimate(s) or repair order however estimate deviation requires written consumer approval.

20) “Faulty Repair” completing a repair that one with experience would know is bound to fail untimely or not cure the initial failure.

21) “Illegal Steering” is the practice of directing, by word or written means a collision repair customer to a specified insurance directed or controlled repair shop, or any shop without the consumer’s consent or approval or by discouraging the consumer to use their own choice of shop by coercion or threat.

22) “Insurance Fraud” is any act committed with the intent to fraudulently obtain payment

from an insurer.

22a) “Insurer Fraud” is an act by an insurance company, agent or appriaser, adjuster or phone relay that intends to knowingly mislead or deny coverage or rightful payment to an consumer or repair facility. Persons of knowledge are considered to know the Regulations that apply to their industry.

23) “Manufacturer Recommended” The original builder of a vehicle published written advice or procedures to test, correct or repair failure.

24) “ Non-Quality Repair” A repair viewed as not equal to its original counterpart or exhibits visual or functional defects.

25) “Paintless Dent Repair” is defined as a process that lessens indentations

in sheet metal components of a vehicle that is achieved without disturbing the external coating to the vehicle.

26) “Peer Review Board” is defined as a board consisting of members of the

collision repair industry who have met the qualifications to serve as an oversight

authority for members of local collision repair industry.

27) “Peer Review Panel” is defined as a panel consisting of qualified members of

the collision repair industry authorized by the Peer Review Board to hear complaints and render disciplinary recommendations to the Peer Review Board for violations of the Collision Repair Code of Ethics.

28) “Pre-Loss Condition” is the physical, visual or mechanical status of a vehicle immediately before an incident that alters the vehicle’s appearance, safety, function or value.

29) “Product Supplier” expressly includes any person, representative,

distributor, or business that markets or sells products for incorporation into, or use in the repair of, a consumer/customer’s motor vehicle i.e. parts, paint, materials, hardware. That sells, licenses, or provides database repair pricing and suggested repair times, theory of activities, procedures, or other information, sells or licenses software, markets, sells, or licenses equipment for use in the collision

repair process.

30) “Quality Repair” The word “Quality” has become a cliché. The action of quality repair is a phrase where the subject example can only be measured by visual comparison to a new undamaged example of similar year, make and model approved by the PRP.

31) “Safety Related” any subject of repair, replacement or process to check operation related to the safety features of a vehicle.

32) “Suspension” is that part(s) related to the steering i.e. wheels, tires, drivetrain axles, differential, and geometric control devices, parts or mechanisims controlling directional operation forward, backward or latteral control.

33) “Third Party” is defined as any person, representative, or organization which

is not a party to the repair contract.

34) “Tortious Business Interference” can occur when a person or entity attempts to disrupt the existing contract between two parties. One party disrupts the ability of others to perform obligations under the contract, thereby preventing performance.

35) “Warranty” is a written obligation or guarantee that a part or service sold will be repaired or replaced at no cost to the buyer for a specific time period or miles drivien, implied by the seller, certain terms typically apply.

Licensure, Registration, Permitting and Business Insurance

1) Licensure*, Registration

(a) No collision repair facility or individual repairer required by state law to

be licensed or registered shall operate or engage in any activities constituting

collision repair without being licensed by the city or township or registered pursuant to the mandates of the NY State’s law. No collision repair facility or individual repairer shall fail to maintain compliance with the licensure or registration requirements mandated by state law.

(b) No collision repair facility or individual repairer, if not employed by a

repair facility, may undertake the repair of any customer’s motor vehicle for

compensation without first acquiring and maintaining in effect a garagekeepers

and/or garage liability insurance policy.

(c) No Collision repairer shall prepare an estimate without proper licensing maintaining and posting as required.

*As of 2009 no licensing of repair shops is required in NY at the present time however registration is required. Licensing is required for all businesses by city and county.

2) Permitting

(a) A collision repair facility must obtain and maintain proper permits for hazardous waste handling from State and Federal agencies. Some debris disposal if required, welding-cutting and associated fluids, fuel and gases storage, pollution to air ,waste water and drainage systems. Copies of permits must be posted as required.

3) Business Insurance

(a) A collision repair facility or individual collision repairer shall maintain a

minimum of $100,000 of garagekeepers liability insurance. Covering completed operations and for vehicles held in their care custody and control. These limits may be reset by the Peer Review Board and reviewed annually.

(b) No collision repair facility or individual repairer may enter into any

agreement that requires the repair facility or individual repairer to indemnify

a 3rd party relating to a vehicle repair unless a written insurance provision(s) are provided that specifically cover the indemnification agreement, the repairs and warranty the vehicle repair.

(c) Nothing in this section, however, shall be construed as prohibiting a repair facility or individual repairer from entering into a contract for vehicle repair with a governmental entity that requires indemnification.

Organization, Facility and Equipment

Certified Collision Shops will have sufficient organization, operational procedures, sufficient facilities and equipment to engage in the safe and legitimate repair of crashed vehicles with the goal of replicating “pre-loss condition” on a regular basis. To maintain appropriate equipment serviced at regular intervals sufficient to complete repairs on vehicles typical of the market area.

1) Organizational Requirements

a) Adhere to an organizational management system so that consumer issues are handled in a timely manner with a goal of resolving complaints fairly to each party.

b) Maintain workers compensation insurance appropriate to the operation of the laws and local ordinances.

c) Maintain proper licensing, permits and postings as required by local city,

county and state or Federal Government.

d) Maintain systems for proper waste disposal of all products used in the operation of the business in accordance with local, state and federal laws.

1) Equipment Requirements

a) Access to Frame Rack, Bench or Structural correction tools

b) Access to four wheel alignment with written printout

c) Access to Computerized Estimating for parts cost and labor

d) Access to reliable manufacturer generated repair information

d) Access to three-dimensional measuring device with printout

e) Metal inert gas (MIG) welding and/or brazing;

f) Manufacturer approved spot welding equipment

g) Code Approved Paint booth with filtered exhaust

h) Separate tools and space for aluminum work if applicable;

i) Tools to identify handle/cut/weld/repair/replace HSS, HSLA, ultra-hard, boron, or other types of steel.

j) Ability to lift a vehicle for underbody inspection.

k) Sufficient light to inspect vehicles for crash damage.

l) Digital camera equipment

2) Facility Requirements

a) Maintain facilities appropriate for the legitimate operation of a collision

facility.

b) Maintain a safe-clean consumer waiting area sufficient to accommodate the

volume of business conducted.

c) Maintain fenced or secured outside storage, security cameras or other alarm to protect the belongings and property of customers.

d) Exterior signage identifying facility and directing consumer to business office. Including state required signage inside and outside.

e) Maintain restroom facilities according to health and labor laws

Repair Contract, Obligations, Judgment

1. It is agreed the Vehicle Owner is the Customer

(a) The collision repairer shall always recognize that only the consumer,

the vehicle’s registered owner, or individual selected as a designated

representative is the customer.

(b) Irrespective of any authority conferred by the customer on a

designated representative, a collision repairer shall not engage in any repair

activities that interfere with or compromise the repairer’s exercise of professional

judgment, as set forth in DR 14.

(c) The collision repairer owes a duty of professional care to the customer

and shall act in the best interests of the customer in all repair decisions and

recommendations. Nothing in this section, however, shall be interpreted as an obligation to perform repairs for free. Nothing shall prohibit a repairer from charging for goods and services, collecting for goods and services rendered, including initiating or defending any action permitted by law or equity, or acquiring or enforcing a possessory lien upon a customer’s vehicle for abandonment or breach of the repair contract.

(d) The Collision repairer shall use a repair contract written in plain language to explain the obligations of each party. The contract shall be reviewed with the consumer and a signed copy shall be maintained in the repair file. A copy will be given to the consumer at the time of signing.

(e) The Collision repairer shall at the request of the consumer prepare a preliminary estimate of the damage. Wording, “Open for additional damage” noted on the appraisal. An Estimate is NOT a contract for repair unless the cost of repair is less than $500.

f) The Collision repairer shall have a written “Privacy Policy” regarding use of the consumer’s personal and financial information that complies with Federal guidelines.

2. Damage Analysis

(a) The Collision repairer or collision repair facility’s damage analyst must

prepare and provide the customer with a completed written analysis of the damage and plan of repair, as soon as practical itemizing the expected cost to repair the vehicle upon request or according to contractual agreement.

(b) The collision repairer does not fulfill the requirement to provide the

customer with a written damage analysis by copying a damage analysis written by another entity, i.e. insurance or other collision repair facility without verification.

(c) In the absence of an executed contract. The Collision repairer has an affirmative obligation to contact the customer, provide the customer with an opportunity to discuss the proposed plan of repair, and obtain the customer’s express written consent for the repairs.

(d) A collision repairer may not utilize any estimate or damage

analysis prepared by any person not employed by or directly affiliated with the

repairer or repair facility for the purpose of engaging in repairs to a vehicle. An

estimate or damage analysis prepared by any person not directly affiliated with the

repairer or repair facility may be used solely for administrative purposes.

(e) At the time of preparing the damage analysis, a repairer shall include

in the written analysis, the year, make, model, mileage, license number or vehicle hull identification number. The analyst shall record all damage visible and all damage reasonably expected to complete repair that is not visible.

(f) The actual cost to repair a vehicle should not exceed the after tear down estimate by more than 10% with regular consistency or as agreed by the PRB in any given case if applicable.

(g) A pattern of preparing a damage analysis that does not include damage

reasonably expected shall be presumed to be deliberate.

(h) The Collision repairer can rebut the presumption of a pattern of deliberately

undervaluing by presenting evidence of specific circumstances or complexity of repair that contributed to undervaluation in any given case.

(i) Allegations of a pattern of writing undervalued estimates may be

submitted alone or determined in discovery by the PRB during adjudication.

3. Professional Judgment

a) The collision repairer or collision repair facility shall exercise professional

judgment and utilize the repairer’s expertise in all aspects of collision repair.

(b) On issues of safety, a repairer shall not relinquish or surrender professional judgment of the necessary repairs, necessary in favor of any external interest including the customer, tortfessor or an insurance company.

(c) On non-safety issues, the repairer may consider the express wishes

of the customer in addition to the repairer’s professional judgment in the repair of

the vehicle. In exercise of due care, the repairer has the final determination of

the appropriate method of repair or parts to be used in the repair with proper consumer acknowledgement by way of written documentation. However the collision repairer still has the duty to act in the best interests of the consumer customer.

(d) Only the Collision repairer shall make the final determination of whether an

issue is safety-related.

(e) The repairer shall consider the vehicle manufacturer’s product

standards, use repair position statements, and/or recommendations for the

repair. If the repairer does not follow the manufacturer’s standards, position

statements, and/or recommendations in the repair, the repairer must maintain documentation in the file as to the reason why the repairer chose to deviate the manufacturer’s recommendation at the time of repair.

4. Affiliations and Compensation

(a) A repair contract shall clearly state that the customer sign an acknowledgement that the customer is responsible for payment of the full cost of repairs.

(b) A repairer may accept payment from a third party on behalf of the

customer with written approval. However, a collision repairer shall not accept payment from any third party if the payment suggests it compromises any claim, or portion of a claim, on behalf of the customer.

(c) A repairer shall not agree with any third party to perform repairs for

the arbitrary amount the third party desires to pay, negating the consumers rights.

(d)Only the customer has the right to make the determination of and agree to the type and cost of repair to be performed unless such agreement is contractually acceptable.

(e) No repair facility repairing vehicles for customers shall be owned by,

controlled by, or unduly influenced by any person or entity whose financial

interests are likely to interfere with a repairer’s exercise of professional judgment

on behalf of, and in the best repair interest of, a consumer/customer.

(f) No collision repair facility shall be owned by, controlled by, or unduly influenced by a collision repair product supplier. Nothing in this section shall be interpreted as prohibiting a repairer facility from following the repair mandates, advice, or recommendations of the vehicle’s original manufacturer. Nothing in this section shall be interpreted as prohibiting a repairer or repair facility to be “certified” by an original manufacturer of a motor vehicle, or exist as a department within a new car dealership. This section is not intended to prohibit repairers or a repair facility

from engaging in normal business relations with product suppliers. It is intended to

prohibit actions on the part of the repairer or repair facility from allowing the

interests of the product supplier to interfere with the best interests of the consumer customer.*

(*4e) A repair facility owned by an insurer is an “inherent conflict of interest” as determined by Allstate Ins. Co. v.Abbott, 2006 U.S. Dist. LEXIS 9342 (N.D. Tex., Mar. 9, 2006), affd, 495 F.3d 151 (5th Cir. 2007), cert. denied, 2008 U.S. LEXIS 1297, 76 U.S.L.W. 3439 (U.S. Feb. 19, 2008), and is unduly influential.

3/12/2008

5) Product supplier expressly does not include the original

manufacturer of a vehicle, or affiliated dealership collision facilities.

Space for Notes:

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Ethical Considerations for operating a collision repair facility

Training, Education, Background, Technical Data

Collision repairers will exhibit proof of experience by Education or Training and

Background to operate a collision repair facility.

1) Training:

a) May consist of all or any combination of pertinent PRB accepted:

b) Courses offered by Technical School, Vocational School, Recognized

post-secondary educational institutions;

c) I-CAR training;

d) ASE certification;

e) Provided by internships with collision repair facilities.

f) Certification programs offered by motor vehicle manufacturers

g) By Suppliers

h) From Equipment Manufacturers

j) From Paint and Material Suppliers

k) Any combination accepted by PRB

2) Education

a) Education programs offered by recognized collision repair organizations.

b) Education programs offered by external organizations whose programs are

approved by collision repair organizations and the PRB.

c) Collision repairers will engage in continuing education and/or certification

to ensure they remain proficient at the repair of one or more specific types of

motor vehicles.

d) Programs promoted and approved by the PRB

3) Background

a) Collision repairers with substantial experience and demonstrating

competency by time served in the industry providing proof of and historical

background supported by written verification from at least 2 PRB members as

sponsors.

4) Technical Data

a) Collision repairs will offer proof of access to current technical data for specific repair procedures, safety reference and approved repair processes from accredited sources in IT format or from a DVD reference library obtained direct from manufacturers.

Peer Review Board and Peer Review Panel Qualifications

To provide for self-regulation and to encourage the use of best practices by persons

involved in collision repair, it is agreed a collision repair Peer Review Board will be appointed to govern the professional activities of collision repairers, to

investigate complaints against repairers, and to act upon complaints or violations of

the Collision Repair Code of Ethics. The Peer Review Board may establish additional panels to consider and adjudicate complaints, which may then be reviewed by the Peer Review Board.

1) Peer Review Board (PRB) will consist of five (5) to ten (10) members.

2) PRB may consist of collision repairers and associate members.

3) Peer Review Panel (PRP) will consist of three (3) to five (5) members.

4) PRB will meet at least once per month, or as agreed.

5) PRB approval is required to create a PRP.

6) If PRB does not elect to create a PRP, the PRB can be the review panel.

7) The PRP is responsible for hearing complaints and imposing sanctions on a

collision repairer for violations of the ARA Collision Repair Code of Ethics.

8) PRP may be created and/or be dissolved as deemed necessary by the Board.

9) The PRB may determine the length of time a PRP may sit.

10) PRB members must have a minimum of (15) years of collision

repair experience before becoming eligible to serve on a PRB

11) PRP members may not have collision repair experience but must have industry experience, ie jobber or supplier to serve on a PRP.

12) Collision repair experience for PRB membership is defined

as “hands on” experience in a registered collision repair facility.

13) PRP will have the ability to review complaints pertaining to

workmanship, safety, and any issues governed by the Disciplinary Rules.

14) PRP will have the ability to issue decisions and recommend the

imposition of sanctions to the PRB as the PRP deems appropriate.

15) PRP decisions may be appealed to the PRB.

16) The PRB will establish rules governing the complaint process,

hearing process, appeal process, and sanctions appropriate for misconduct.

17)The PRB will establish rules governing the selection process for PRB and

PRP service ensuring impartiality of any PRB, PRP, guaranteeing the

adequacy of the adjudicatory process.

Misconduct

Misconduct

It is professional misconduct for a collision repairer or collision repair

facility to knowingly participate in any of the following in the conduct of collision repair activities:

1. (a) Violate or attempt to violate with ambiguity the Collision Repair Code of Ethics or knowingly assist or induce another to do so, or do so through the acts of another;

(b) Commit an illegal act that reflects adversely on the collision repairer or

collision repair businesses’ honesty or trustworthiness;

(c) Engage in conduct involving dishonesty, fraud, deceit, or misrepresentation;

(d) Engage in conduct that constitutes “bidding” for collision repair work

that is arranged, controlled, redlined or influenced by a third party;

(e) Engage in conduct, including a failure to act, that adversely affects the

safety of any member of the motoring public, including passengers;

(f) Falsely report that a collision repairer or collision repair facility has

engaged in professional misconduct.

(g) Engage in activity where a conflict of interest exists between parties unless all the parties agree in writing and are represented by counsel.

2. Reporting Professional Misconduct

(a) A collision repairer who possesses knowledge of a collision repairer’s or

repair facility’s violation of the Collision Repair Code of Ethics shall

inform the Peer Review Board or other disciplinary authority empowered to investigate or act upon such a violation.

(b) A collision repairer who possesses knowledge of a collision repairer’s or

repair facility’s violation of any state or federal consumer protection

statute shall inform a regulatory authority empowered to investigate or

act upon such a violation.

(c) A collision repairer who possesses knowledge of a collision repairer’s or

repair facility’s violation of any state or federal vehicle code or safety

regulation or statute shall inform a regulatory authority empowered to

investigate or act upon such a violation.

(d) A collision repair member shall accept written complaints against members and refer the complaint to the association for processing of the complaint before the PRP and PRB.

Disciplinary

Disciplinary Guidelines

Disciplinary action by the PRB on behalf of the Association may include private reprimands; private censure, suspension of the ability to participate in the Association and, most severe of all, bared from the ability to continue membership in our jurisdiction. Should a member wish to appeal the finding of the PRB they may submit a written appeal within 30 days by certified mail. Appeal must include position proof of procedural error or correction of incorrect evidence.

The New York State Auto Collision Technicians Association may be used to decide final arbiter in questions of professional conduct in all NY jurisdictions.

Since 1975, the ARA has been responsible for defining the standards of proper conduct for the collision repair profession. These standards, many of them established by the ARA's stand on Ethics and Professional Responsibility, are continuously evolving as technology and the production of motor vehicles evolve. In 2009, the ARA adopted this Model Code of Professional Ethics, as a guideline for membership qualification, proper conduct and basis for certification.

The ARA modified the code by adopting the Model Rules of Professional Conduct. The model code rules have been used by other states to create guidelines for professional conduct. Whatever the basis, these codes define the collision repairers role and relationship to the consumer/customer. It is essential that these ethical codes be followed so that uniformity is established within the industry. Failure to do so may result in financial loss by unnecessary liability exposure to malpractice suits against the collision repairer too financial loss for consumers, injury and death.

Besides issuing these general statements, the model rules set down many specific requirements of conduct in different situations.

Because of a collision repairers relationship to the consumer, members of the association are beneficiaries of the consumers trust. You are subject to duties and responsibilities that include the word fiduciary. This quote comes from the Latin word fiducia, meaning "trust"; as a fiduciary, the professional is entrusted with defining elements of re-manufacture of damaged vehicles, and without it, the trade does not exist. For that reason, this profession has created rules of conduct regarding the relationship with consumers.

Consumer Relationship

The model rules set forth specific guidelines defining the consumer relationship. A professional will be guilty of misconduct, for example, if he or she fails to provide competent repair according to manufactures guidelines or documented proof of the reason for variation acting with diligence regarding a consumers safety. Charging exorbitant fees or over-billing is also considered misconduct, as is counseling a consumer to commit a crime.

Many types of misconduct involve a conflict of interest on the part of the collision repairer. A conflict of interest arises when a professional puts personal interests ahead of professional responsibilities to the consumer. The model rules specify the potential for conflict of interest in many different situations. Thus, for example, a professional collision repairer who by representing a consumer cannot represent the interests of a insurance company paying for the cost of repairs. This activity adversely affects the consumers right to fair settlement. Conflict of interest is misconduct. Conflict of interest rules also forbid us to enter into a business transaction with a consumer unless the consumer is fully aware of how the transaction will affect his or her rights and agrees to the transaction in writing.

Any misuse of the consumer’s privacy or money by the professional is called misappropriation of consumer funds — constituting a serious breach of trust and a gross example of misconduct. This offense includes consumer fraud including knowingly charging for parts or services while not performing the repair. While typical rules of confidentiality do not apply unless contractually agreed. It is understood professional repairers are not protected by law as Doctors, Lawyers and Clergy are. However rules of contractual privacy apply and afford certain protection of confidentiality.

Other Types of Misconduct

As the model rules indicate, you may be charged with misconduct if you commit a criminal act. However, not all violations of the law may result in professional censure. According to the ARA, a professional is responsible "only for offenses that indicate lack of those characteristics relevant to collision repair." They do however include violations involving "violence, dishonesty, breach of trust, or consumer fraud. Nevertheless, violations of the law may seriously impair a professional’s standing.

Ethical rules also govern the conduct of professionals toward other members. It is considered misconduct if a member attempts to influence a member of the PRB or PRP by coercion, bribery or intimidation. Professional collision repairers are forbidden from discussing or negotiating a consumer insurance claim without his or her prior written authorization. This rule follows NY State Regulation 64 designed to protect a consumers right to fair settlement.

Professional collision repairers are guilty of misconduct with regard to falsely advertising their services. It is illegal and for purposes of this Code of Professional Conduct, unethical for collision repairers to knowingly advertise in a false, deceptive, or misleading manner. To make unsubstantiated claims regarding services for proposes contrary to rules of professional conduct.

Organization Participation

Continued participation and paid membership is required for collision repairs to maintain Certification.

This will assist repairers to share knowledge and expertise, promote continuing education and professionalism within the industry, increase the industry’s public presence and increase public confidence in the collision repair industry.

Plain Language

The purpose of laws requiring customer consent for the use of particular

parts in a repair and for the anticipated cost of repair are to enable those customers

to make informed decisions about the repair. Current repair estimates provided to

consumer are written in a coded fashion that is similar to a foreign language to most consumers and they may not readily understand. Therefore, any documentation

provided to a customer should be written in plain language that is capable of being

understood by an ordinary person. This will enable consumers to make truly

informed choices about repairs to their motor vehicles.

ARA has established policies and procedures to fairly and consistently address alleged violations of the Code of Ethics. The complaint procedures have been designed to ensure that only valid and actionable complaints are investigated and considered, and that all parties involved in the complaint have an opportunity to document circumstances warranting the complaint, and to respond to the complaint.

ARA has a two-tier process to ensure that issues regarding the practice and conduct of operators are fairly and reasonably investigated and determined, and that the public is protected against unprofessional and unethical conduct by facilities. Complaints against facilities are initially investigated by PRP upon receipt of a written complaint. Complaints must outline the basis of the complaint. Complaints must be in written form and include all pertinent evidence in copy form, photos and disc are acceptable. If the complaint is considered actionable, the Ethics and Discipline Committee informs both the facility member and the complainant of the official opening of the investigation in written format. Following the investigation of the complaint, the Ethics and Discipline Committee informs the facility and the complainant of its decision or need for further investigation. The PRP or PRB may recommend a financial settlement or a manner in which corrective measures will effect settlement acceptable to all parties. If a sanction is imposed, the facility may request an appeal as stated above. The decision of the PRB is final. Member and complainant consumer agree to hold harmless ARA Inc. and it’s members, members of the PRB and PRP both personally and corporately.

Application for Certification

Facility Name_____________________________________________Date___________

Address_____________________Phone_________________email_________________

Years in Business ________

Former Business name if any____________________

Experience_______________________________________________________________________________________________________________________________________________________________________________________________________________

Background_____________________________________________________________________________________________________________________________________

Attach additional sheets if needed

Principals Industry Experience (years)___________________________

Sponsor Fill Out_____________________

Answer yes or no, answer question or fill in the blank:

DMV REG #__________________________

Apparisers Lic#_________________________________

Tax ID#___________________________________

Equipment:

Frame Rack ______Brand_________Age________Regualarly Serviced__________

Frame Bench_______Brand_________Age_________

Measuring System______Computerized_______Brand_______Age___Print Out_______

Sublet Frame Service________________________________

Ability to Lift vehicle for inspection_________________________________________

Lighting acceptable for inspection and repair____________________________

Spray Booth_______________Brand___________Code Compliant________ Age _____

Welding- Cutting Acetylene______ Mig_____Tig_____Spot_______Brazing_______

Cutting_________Plazma________

Do you sublet 4 Wheel Alignments or in house:_______________________

4 Wheel Alignment Equip:

Brand_________Age______Computerized_______Printout Capable___________

Wheel Diagnostic________Balancing__________Tire Changing_____________

Engine Diagnostics_____________________Brand _______________Age________

Application for Certification, Continued

Paint

Approved Paint System with computerized scale or VOC recording capable._________________________________________________________

Facility:

Meets local building and fire code_______________________________

Signage-Shop Name-State Required signage __________________

Entrance well marked_____________________________________

Accessible_____________________________________________

Handicapped______________________________________

Restrooms_____________________________________

Sufficient Parking-Storage______________________________

Fenced or Secured Storage____________________________

Lighted Exterior______________________________

CCTV surveillance_________________________

Customer Key Drop_______________________

Consumer Information-Signage___________________________

Insurance Garage Keepers- Primary__________Legal_________Excess________

Worker Compensation__________________________________

Right to Know Training_________________________________

Waste Control:

Approved solid waste disposal system for metal, paper, plastic, cardboard___________________________________________________________

Approved Liquid waste disposal system and manifests kept___________________

Approved Lighting disposal and system for disposal records____________________

Approved Filter System for paint exhaust_____________________________

Approved Filter Disposal System____________________________

DEC-EPA permits _________________________________________________

Operations

Estimating System______Brand___________Computerized________

Contract for Repair______________________________

Designated Representative Form_____________________

Privacy Policy____________________________

Prepared by______________________________Date___________

Approved By

____________________________________________Date__________

____________________________________________Date__________

____________________________________________Date__________

Consumer Complaint Form

To access this form:

Consumer

Date_____________

Complainants Name, Mr. Mrs. Ms.______________________________________

Address: Street City State_____________________________________________

__________________________________________________________________

Phone Home_______________Work_________________Cell___________

Email____________________Best way to contact_____________________

Repair

Reason for Initial Repair. (Crash-Maintenance)_________________________________

Reason for Complaint :

Repair Failure_____________

Warranty Breach____________

Advertising_________________

Administrative________________

Safety Issue_________________

Other_______________________attach other sheets

Vehicle

Year______________Make____________Model___________Date of Repair_________

Attempts to Resolve or Correct

Date/Reason Return Visit 1__________________

Date/Return Return Visit 2__________________

Additional Visits__________________________

Insurance

Date of loss__________________

Name of Company if Applicable______________

First Party Claim(your ins co.)________________________________

Third Party Claim(someone else’s ins co.)________________________________

Name of Appraiser___________________Name of Adjuster_________________

Insurance Referral Shop_____________

Consumer Selected Shop_____________

Amount

Total cost of repair invoice_______________________________________________

Estimated cost of re-repair if known/applicable__________________________

Who inspected vehicle for re-repair________________________________

Desired remedy ______________________________________________

Has another shop inspected the car? ______________________________

Name of inspection shop and contact person________________________

____________________________________________________________

Settlement amount desired______________________________________

Supporting Documentation

Attached Photos_________________________________

Other Documentation__________________________________

When is vehicle available for inspection_________________________________

Would you be available to testify?__________________________________

Consumer Sign ___________________________________________Date__________

Other Contact:

Spouse/Parent/Lawyer____________________________Phone___________________

Comments_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________________

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