The Sales Integrity Program encourages the disclosure of ownership of horses in a sale. Supplying ownership information is not a requirement under the Code of Ethics. It is important to some buyers to know all parties that might have an interest in the sale horse. Those buyers should ask questions about the ownership of a horse, and if a buyer is not comfortable with the information available, then he/she should not go forward with the purchase of the horse.
The Sales Integrity Program recommends a condition of sale be included by each sales company that incorporates the following points regarding the disclosure of ownership. Fasig-Tipton and Keeneland have revised their conditions of sale to include many of these points. Ensure that your sales company includes these points as part of their conditions of sale.
A potential buyer should look for a condition of sale that includes:
If the purchaser of a horse learns, after the sale, that the information in the catalogue or Ownership Registry was not materially accurate, or that there was an undisclosed change in ownership after the horse was on the sales grounds, the purchaser has the right to collect liquidated damages, provided that:
If it is found that there was a material inaccuracy in the Ownership Registry or in the catalogue at the time of sale of the horse that was not corrected by subsequent notice as required by the Condition, or that the seller or consignor failed to disclose to the sales company, that there was a change in ownership prior to the sale of the horse or the party from whom the purchaser seeks liquidated damages had actual knowledge at the time of the sale of the material inaccuracy in the Ownership Registry or catalogue, or of the failure to disclose change in ownership as required by the Condition the purchaser may proceed with the following dispute resolution process.
|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|
If a dispute arises regarding ownership disclosure, and the parties are unable to resolve the matter among themselves or with the help of the sales company, the complainant may initiate arbitration pursuant to the rules of the American Arbitration Association. The parties agree to submit the dispute to binding arbitration, which will be held in Lexington, Kentucky. The findings and decisions through arbitration will be final and binding on the parties.
The non-prevailing party in arbitration pays the costs of arbitration and reasonable attorneys' fees of the prevailing party, including the costs of the sales company.
If it is found, through arbitration that a violation to the Condition of Sale has occurred: