16.1     Citations.  The Board may impose fines and/or sanctions for violation of any Rule and Regulation. Additionally, the Board may implement a schedule of fines and other sanctions  (see Exhibit A-1) for certain violations of these Rules and Regulations. The Board may direct staff to issue citations for the specified violations and implement a procedure for payment. Any Member receiving the citation must pay the amount specified on the citation but may request an appeal according to the policy as set forth in Exhibit B.  Members receiving a citation will be required to complete the BAREIS Online Orientation class within 14 days of receiving the citation, and if they do not complete the class on time, the fine shall be doubled.  Three violations that result in fines within a 12-month period shall result in a disciplinary hearing for further action, which may include expulsion from BAREIS. (1/23/06) 

16.2    Grounds for Disciplinary Action and Sanctions.  After a hearing by a hearing panel as provided in the California Code of Ethics and Arbitration Manual, the Board may take disciplinary action and impose sanctions against any BAREIS Participant or Subscriber:

(a)        For violation of any Rule or Regulation;

(b)        Upon the Member being convicted, adjudged, or otherwise recorded as guilty by a final judgment of any court of competent jurisdiction of a felony or a crime involving moral turpitude;

(c)        Upon a determination by any court of competent jurisdiction or an official of the State of California authorized to make the determination that the Participant or Subscriber violated a provision of the California real estate law or a regulation of the California Real Estate Commissioner or laws or regulations relating to appraisers or, with respect to the conduct of business as a real estate broker or appraiser, has engaged in unfair business practices, including false or misleading advertising, in violation of California Business and Professions Code, §17,200 through §17,210;

(d)        For any violation of Regulation 16.2(a) by a non-Member sales agent or broker who is affiliated with the Participant where the Participant is the broker through which the sales agent or broker has access to the MLS Database;

(e)        For any violation of Regulation 16.2(a) by an administrative user who is registered under a Member.

16.3     Sanctions.  Sanctions or disciplinary action for violation of a Rule or Regulation may consist of one or more of those specified in the California Code of Ethics and Arbitration Manual. Anyone may file a disciplinary complaint against a Member or reciprocating Member for any Rule or Regulation violation. (12/12/05)

16.4     Procedures for Disciplinary Hearings.  All Rules and Regulations hearings shall be processed in accordance with the California Code of Ethics and Arbitration Manual, as from time to time amended, which is hereby incorporated by reference.  Failure to abide by the procedures shall be a violation of these Rules and Regulations.

16.5     Mandatory Arbitration.  By becoming and remaining a Member in BAREIS, each Member agrees to submit to binding arbitration disputes arising out of real estate business, or in conjunction with any listing set forth in the MLS Database, or any appraisal, with (a) any other Participant or Subscriber of BAREIS, or (b) participants and subscribers of any other MLS who are authorized to have access to the MLS Database under Regulation 8 of these Rules and Regulations, or (c) a client arising out of an agency relationship with the Participant or Subscriber, if the client elects to arbitrate the dispute and agrees to be bound by the arbitration award.  Such arbitrations shall be governed by the California Code of Ethics and Arbitration Manual, as from time to time amended, which is hereby incorporated by reference.

            This shall be deemed an arbitration agreement within the meaning of Part 3, Title 9, of the California Code of Civil Procedure.  Failure to submit to arbitration as provided herein shall be a violation of these Rules and Regulations. 

16.5.1   Other Arbitration Agreements.  Notwithstanding any other provision of these Rules and Regulations, if any Participant or Subscriber enters into an agreement (either before or after a dispute arises) with another Participant or Subscriber to arbitrate a dispute utilizing non‑BAREIS facilities, such persons are not bound to arbitrate the dispute covered by such agreement under these Rules and Regulations utilizing BAREIS facilities.

16.5.2   Arbitration Between Class B (Association) Members.  Notwithstanding any other provision of these Rules and Regulations;

(a)       If all disputants are Members of the same Class B Association, they shall arbitrate under that Class B Association in accordance with its rules.

(b)       If the disputants are Members of different Class B Associations, they remain obligated to arbitrate in accordance with the CAR interboard arbitration rules or under a regional or shared professional standards agreement.

(c)       Arbitration between persons affiliated with the same firm is not mandated by these Rules and Regulations and will not be accepted unless there is a written agreement to submit such disputes to the Class B Association for arbitration.

16.5.3   Timing.  For purposes of this Regulation 16.5, the duty to arbitrate shall be determined when facts giving rise to the dispute occurred.  Therefore, a Participant or Subscriber shall have a duty to arbitrate if the person was a BAREIS Participant or Subscriber when facts giving rise to the dispute occurred.  Termination of BAREIS participation or a subscription shall not relieve the arbitration duty under this Regulation 16.5.3 for disputes that arose when the person was a BAREIS Participant or Subscriber.  Requests for arbitration must be filed within 180 days after the closing of the transaction, or after the facts constituting the matters in dispute could have been known in the exercise of reasonable diligence, whichever is later.

16.6      Indemnification.  In connection with, conditioned upon and in consideration of BAREIS’ granting of rights to use the MLS Database pursuant to these Rules and Regulations, each Participant, listing broker and Subscriber (each an “Indemnifying Party”) shall, and does hereby agree to, indemnify, defend and hold BAREIS and its service center operators and all officers, directors, employees and agents thereof (collectively, the “Indemnified Parties,” and, individually without distinction, an “Indemnified Party”), harmless from and against and in respect of any and all damages, losses, deficiencies, liabilities, fines, judgments, assessments, costs and expenses, including reasonable legal fees, and expenses and costs and expenses incurred by BAREIS in administering any mediation or arbitration involving the Indemnifying Party, incurred or suffered by an Indemnified Party as a result of, relating to or arising out of any and all actions, suits, claims, proceedings, investigations, demands, assessments and audits incident to or in any way connected to (A) the use or publication by BAREIS (including electronic publication) of any listing information, or any part thereof, submitted by or through an Indemnifying Party, or (B) any one or more breaches by the Indemnifying Party of any representation and warranty made thereby to BAREIS, or (C) any one or more failures by the Indemnifying Party to abide by BAREIS’ Bylaws and BAREIS’ MLS Rules and Regulations, as the same may be amended from time to time, in all respects,  including any failure to provide full, true, complete and accurate listing information for inclusion in the MLS Database or BAREIS’ publication of such listing information.  If any action is brought to enforce the terms of this indemnity clause, the prevailing party shall be entitled to recover its reasonable attorneys’ fees.  Each Indemnifying Party waives all rights to assert claims against any of the Indemnified Parties for losses and damages arising out of or in connection with these Rules and Regulations in the nature of incidental or consequential damages, whether direct or indirect, exemplary or punitive, lost profits, diminution in value or damage to reputation or goodwill.  (12/01/06)