Bloodstock Agent Code of Conduct
The Sales Integrity Program created a code of conduct for bloodstock agents that will be included as a condition of sale at participating sales companies. For your protection, ensure your sales company includes this code of conduct as a condition of sale.
The Role of Agent
A bloodstock agent is an individual and/or company who provides advice and/or bids on behalf of an owner. Many bloodstock agents also prepare and sell horses on behalf of the horse's pre-sale owner. Thus, it is important that the varied roles of the bloodstock agent be made clear. The Sales Integrity Program believes prospective buyers will be best served by entering into a written agreement with their agent.
The Sales Integrity Program's Bloodstock Agent Code of Conduct
- Outlines seven specific situations (click here to view) where a bloodstock agent must disclose to his client certain information, particularly circumstances that represent a conflict of interest.
- An Agent must not place himself in a position where personal interests conflict with duties to his Principal, except with full advance disclosure;
- When an Agent acts as a Seller of any horse in which he has an interest, the Agent must disclose to the Principal the full extent of the Agent's ownership interest and benefit to be derived from the transaction;
- If an Agent represents more than one Principal, the Agent must first disclose the dual agency and obtain the consent of all Principals to the Agent's dual agency;
- An Agent must notify his Principal when a conflict of interest arises;
- An Agent must disclose any Luck Money he receives to his Principal, and account to his Principal for the Luck Money if the Principal requires;
- A Seller or Agent shall not offer any Secret Profit to any person the Seller or Agent believes is acting as an Agent for a prospective purchaser; and
- An Agent shall not bid at public auction on any horse the Agent knows his Principal intends to bid or his Principal is selling, except with the Principal's full knowledge and consent.
- States a dispute resolution process when a breach of the Code of Conduct allegedly has occurred and enforcement and sanctions to be imposed for code violation as described below.
Dispute Resolution Process
If a conflict arises between a buyer and agent the dispute resolution process is as follows:
- Provide a written statement to the sales company describing how the alleged breach occurred. This statement must include the sale location, date, hip number, parties involved, summary of circumstances and any other pertinent information. The sales companies listed below have agreed to adopt the Bloodstock Agent Code of Conduct and thus the dispute resolution process as a condition of sale. The appropriate contact person at each sale company is:
- If the parties are unable to resolve the matter among themselves, with the help of the sales company, the complainant may initiate arbitration pursuant to the rules of the American Arbitration Association. If arbitration occurs, it will be held in Lexington, Kentucky and the findings and decisions through arbitration are final and binding on the parties. The Code or a violation of the code does not preclude the aggrieved party from pursuing all remedies at law that he may have.
| Keeneland Association, Inc. | Fasig-Tipton | |
|---|---|---|
| Geoffrey Russell | Boyd Browning | |
| Director of Sales | Executive Vice President | |
| P.O. Box 1690 | 2400 Newtown Pike | |
| Lexington, KY 40588 | Lexington, KY 40511 | |
| (859) 254-3412 | (859) 255-1555 | |
| (859) 255-2484 fax | (859) 254-0794 fax |
Enforcement and Sanctions
If it is found, through arbitration that a violation to the Code of Conduct has occurred:
- the arbitrator may impose sanctions against the violator
- sanctions may include exclusion from participation in sales or from the sales grounds for a period of time
- the sales company will post the name of the party sanctioned and the sanction during the period of exclusion and
- the prevailing party in arbitration is entitled to recover costs and expenses
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