TERMS AND CONDITIONS

Definitions

- In these conditions the following definitions apply:

we

Hong Kong Motor Inspection Ltd.

you

the potential purchaser or owner of a vehicle who requests for the inspection service.

inspector

a motor vehicle inspector arranged by us on your behalf

report

the written report produced by HKMI as part of the inspection service which will contain your name and address, details of the vehicle Inspected and its location, as well as a list of checks customized to outline areas of concern which the inspector has decided should be brought to your attention.

service

the vehicle inspection service arranged by us on your behalf.

General

- We are not associated with any dealer and/or repair shop, and, thus, have no interest in you purchasing (or not purchasing) a particular vehicle. This makes our impartiality and honesty intact, unlike that of a repair shop that anticipates in making money on repairs after the vehicle is purchased.

- All orders for vehicle inspection are accepted by us on behalf of and carried out by the inspector who is an independent inspector on the understanding that the conditions set out below apply to the service and that the full vehicle specification including performance enhancements or any modifications have been fully disclosed to us.

Whilst respecting the confidentially of your vehicle report we have a duty of care to notify the vendor of any defects that would make the vehicle un-roadworthy.

- The repair prices are provided for reference purpose only since a repair shop will charge what they see appropriate. Also, prices for parts differ greatly from manufacturer to manufacturer, and the most appropriate repair procedure as determined by our Inspector may vary from that determined by a repair shop which - unlike us - is not in business of saving you money. We do not have control over another business' operation, charges and policies .

- There is a subsequent inspection discount of %10 if the next inspection is requested within two weeks after the previous inspection.

The service

The Hong Kong Motor Inspection service includes:

- A visual inspection of the vehicle by the inspector which includes a 260 point check detailed in the report,

- A road test of the vehicle - The inspector will not perform a road test if the vehicle does not have a current registration certificate, or if in his opinion the vehicle is unsafe or un-roadworthy.

A report will be produced and completed by the inspector and emailed, fax or posted to you. You are strongly recommended not to finalise any purchase of the vehicle until you are in possession of, and understand the contents of your inspection report.

What the service does not include:

- Some tests may not be available or applicable to all vehicles. For instance, certain components may not be accessible without extensive dismantling, or manufacturer-specific implementations may limit test availability.

- Some components listed in the inspection report may not be applicable to all types of vehicles. For instance, 2WD vehicles are not equipped with transfer case.

- The service does not provide any fault analysis or include any dismantling of the vehicle or any of its components. It does not include the inspection of items not listed on the report, does not amount to a guarantee against any failure of the vehicle in the future or the serviceability of the vehicle nor any indication as to the accuracy of the odometer reading.

- The service cannot provide a guarantee that the passenger or luggage compartments are watertight nor does it provide any indication of any faults which might have become apparent had the vehicle been driven in excess of the speed reached or the distance travelled during any road test carried out during the inspection.

- The service does not give any guarantee that all or any of the components of the vehicle are original components or replacement components, which have been manufactured by the manufacturer of the vehicle, nor does it guarantee that the vehicle would pass a registration renewal test. If the vehicle has less than 3 months of registration left we strongly recommend that a registration renewal test be carried out prior to purchase.

- The service does not provide for the inspection of any components or areas of the vehicle, which are not reasonably visible or accessible to the inspector at the time of the inspection. No guarantee of authenticity of the vehicle Registration certificate, the VIN Number, the Engine Number, the Registered Number or the vehicle service history is provided. Whilst we will use all reasonable endeavours to deliver the service to you at the time and date agreed, if for any reason we or the inspector are unable to provide the service as a result of circumstances outside of our, or his control, we shall not be deemed to be in breach of our contract with you or have any liability to you but will carry out the service at the earliest alternative opportunity.

We will not carry out an inspection under normal terms if the vehicle specification including any modifications has been understated prior to the inspection or until the appropriate additional fee has been agreed, ordered and paid by direct contact with our offices on tel: 2588-1822. If this option is not adopted our 'date of the arranged inspection' cancellation clause applies.

Your Responsibilities

- You are responsible at your own expense:

For ensuring that full access to the vehicle is available in order that the inspector can carry out the service and road test on the date and time agreed.

For obtaining the owner's permission to road test the vehicle and ensuring that the vehicle has a current registration certificate.

For notifying the inspector of any known un-roadworthy or defective components or features that the vehicle may have.

For ensuring the location of intended inspection is a suitable environment, fit for purpose and that legal parking facilities are available for the inspector and his equipment.

In the event that upon attendance the location is found to be unsuitable, an evaluation will be made as a result of which we reserve the right not to continue with the inspection. In such cases our 'date of the arranged inspection' charges apply. Although every effort will be made to inspect the vehicle at the arranged time this cannot be guaranteed due to unforeseen circumstances.

Charges

- Should you cancel the inspection your inspection fee will be refunded less $400 to cover the cost of the administration. Such information must be advised to our Customer Service Department on tel: 2588 1822. However, if the inspection is cancelled within 24 hours prior to the appointment time, the full fee of the inspection service will remain payable. This is referred to as our rate of the arranged inspection fee.

Limit of our responsibilities

- The inspection can only describe and/or identify defects actually found which are reasonably capable of being found upon a visual external consideration of the vehicle AT THE TIME OF THE INSPECTION.

- Despite all of our efforts, precise procedures, and special equipment our inspectors utilize, certain defects such as intermittent conditions may not be detectable. There is also a remote possibility of a human error, and if this happens we will issue a refund up to the cost of inspection which is the maximum amount HKMI Ltd. is liable for. This means in the unlikely event that our inspector misses a major mechanical component (transmission, engine, differential) deficiency, the customer is entitled to receive a refund of up to the Inspection fee amount. This is referred to as our Money Back Guarantee policy.

Restrictions for the Money Back Guarantee policy:

•  This Money Back Guarantee policy does not apply to the vehicles older than 10 years, with over 100,000 kilometers, and those in overall poor mechanical condition as determined at the time of inspection.

•  Electrical, electronic, computer-related, and other components that are likely to exhibit intermittent malfunctions are excluded.

•  The claim must be made within 2 days after the inspection has been completed, and before any repairs have been made. The vehicle must be available for inspection at the discretion of Hong Kong Motor Inspection. Ltd.

•  The claim amount may not exceed the cost of the Inspection fee already paid by the customer NOT including any travel charges outside of our coverage area.

In reality, nobody can give a 100% accuracy guarantee, and those who claim that they can are either deliberately misguiding their customers or don't know what they are talking about. Buying a used vehicle is ALWAYS A GAMBLE, and our job is to increase your chances dramatically by changing odds in your favor.

We cannot be held responsible for any latent defects if we cannot see them or they are not apparent during the inspection. In particular please note that vehicles over 5 years old and have a high mileage i.e. over 100,000 km or have been subjected to abnormal use may have latent defects. Whilst such defects may in some circumstances give rise to a claim against the vehicle supplier, they fall outside the scope of our reports and our reports are provided to, and accepted by our customers on this basis.

The inspection undertaken on your behalf is not a guarantee or warranty as to the condition of the vehicle and cannot under any circumstances be used by the vendor to avoid responsibility imposed by law or under any after sales warranty issued by or on behalf of the vendor.

Please note that vehicles over 10 years old may contain serious internal, structural or mechanical defects and/or hidden corrosion which is not detectable from external, visual assessment. These types of vehicle may prove to be less reliable and need more frequent repairs/servicing than more modern vehicles. Whilst every care has been taken to identify potential problems, these and other disadvantages in owning such a vehicle must be accepted by the customer.

If there is no documented evidence of recent ENGINE CAM BELT REPLACEMENT, we recommend that the cam belt is checked or replaced prior to purchase.

Any statement or advice given to you by the inspector orally and not confirmed in the report cannot be relied upon by you. Neither we nor the inspector shall be liable for any such advice which is not confirmed in the report.

If the subject vehicle does not have recent SERVICE HISTORY, then we recommend that a service in accordance with the manufacture's specifications be undertaken, PRIOR to purchase. This may highlight other defects giving rise to repairs, which were not apparent on an external visual inspection.

It should be carefully noted that the life expectancy of exhaust systems and clutches is uncertain and difficult to predict. The fact that such items have not been identified as faulty on the report does not and should not be taken to imply that such a system will have a continuing life expectancy from the time of our check.

You are strongly advised to discuss the findings within the report with the vendor PRIOR to making any decision to purchase the vehicle.

In the event that anyone acts in an abusive or threatening manner to a member of HKMI staff or any of our contractors, we reserve the right to cease or cancel any conversation/transaction or inspection and, if applicable, under the terms of our 'date of inspection' charges.

We will not be liable for the non-performance or non-fulfilment of any part of the service to you due to any circumstances which may be outside our control. In such circumstances we may at our discretion rearrange the service and retain the right to charge either the full price of the service or the cancellation charge as appropriate.

Vehicle Technical Systems

- Many vehicles are fitted or equipped with automatic or computerised operating systems which may be controlled by microprocessors. These include engine management systems, fuel systems, ignition systems, air conditioning systems, hollow components (such as suspension arms which may corrode internally), stereo radio, cassettes, amplifiers, compact discs, active and self levelling suspensions, gearboxes, turbo-chargers and superchargers, anti lock braking systems, four wheel drive and electronic lockable differential units, traction control, alarm and immobiliser systems, GPS systems, catalytic exhaust systems and variable camshaft timing systems.

Within the scope of the service it is not possible to check fully the detailed operation of these systems due to the many variations in features and operating modes and it is not possible to confirm that these systems are functioning fully to the manufacturers design specifications. As a result the inspector is unable to confirm the detailed operation of any of these systems other than giving an overall view and opinion on the performances generally tested.

Therefore, we cannot be held in any way liable or responsible for the failure of any of these systems to perform to the specification as designed by the manufacturer.

Complaints

- Complaints relating to vehicle inspections must be made in writing within 7 days of the date of the inspection to Hong Kong Motor Inspection.

We reserve the right to re-inspect any vehicle at our own expense should it be considered necessary to deal with any complaint and an unbiased second opinion will be provided.

No repairs should be carried out or any parts replaced on any vehicle which is the subject of a complaint before the vehicle has been re-inspected by us.

We will not, under any circumstances, be responsible for the cost of any repairs carried out without our previous agreement in writing. Should emergency repairs be required to make any vehicle safe which is to be the subject of a complaint to us then you must ensure that a complaint is made to us immediately afterwards and that any faulty or worn parts which may have needed to be replaced are retained for future re-examination by us.

Unforeseen Catastrophe

- We are not responsible for any loss, damages, costs, claims or expenses which you may incur as a result of our delay in or failure to perform our obligations where such delay or failure is due to causes beyond our control. Causes beyond our control include: fire, flood, earthquake, accident, civil disturbances, war, rationing or embargoes, strikes, labour problems, delays in transportation, inability to secure necessary materials, delay or failure of performance of any supplier or subcontractor, acts of God and acts of Government.

Assignment

a) You shall not assign, subcontract or otherwise transfer your rights and/or obligations, under this Agreement without our prior written consent.

b) We will only assign or otherwise transfer the whole or a portion of our rights, duties or obligations under this agreement with your consent. The inspection of the vehicle will be carried out by one of our independent Engineers.

Governing Law

- This agreement is governed by the laws of Hong Kong SAR and any disagreement or claim will be settled by the courts of Hong Kong.