CarMax 2007 Annual Report Download - page 20

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Training. We place special emphasis on attracting, developing, and retaining qualified associates and believe that
our favorable working conditions and compensation programs allow us to attract and retain highly qualified
individuals in each market that we enter. We accomplish this partly through our commitment to provide exceptional
training to associates. Store associates receive structured, self-paced training programs that introduce them to
company policies and their specific job responsibilities through KMX University – our proprietary intranet-based
testing and tracking system. KMX University is comprised of customized applications hosted within a learning
management system that allow us to author, deliver, and track training events, and to measure associate competency
before and after training. Most new store associates are also assigned mentors who provide on-the-job guidance and
support.
We also provide comprehensive, facilitated classroom training courses to sales consultants, buyers, automotive
technicians, and managers. All sales consultants receive extensive customer service training both initially and on an
ongoing basis. Buyers-in-training undergo a 6– to 18–month apprenticeship under the supervision of experienced
buyers, and they generally will assist with the appraisal of more than one thousand cars before making their first
independent purchase. We utilize a mix of internal and external technical training programs in an effort to provide a
stable future supply of qualified technicians. Reconditioning and mechanical technicians attend in-house training
and vendor-sponsored training programs designed to develop their skills in performing repairs on the diverse makes
and models of vehicles we sell. Technicians at our new car franchises also attend manufacturer-sponsored training
programs to stay abreast of current diagnostic, repair, and maintenance techniques for those manufacturers’ vehicles.
Additionally, our management-training program includes rotations through each functional area. We open new
stores with an experienced management team drawn from existing stores.
Laws and Regulations
Vehicle Dealer and Other Laws and Regulations. We operate in a highly regulated industry. In every state in
which we operate, we must obtain various licenses and permits in order to conduct business, including dealer,
service, sales, and finance licenses issued by state and certain local regulatory authorities. A wide range of federal,
state, and local laws and regulations govern the manner in which we conduct business, including advertising, sales,
financing, and employment practices. These laws include consumer protection laws, privacy laws, anti-money
laundering laws, and state franchise laws, as well as other laws and regulations applicable to new and used motor
vehicle dealers. These laws also include federal and state wage-hour, anti-discrimination, and other employment
practices laws. Our financing activities with customers are subject to federal truth-in-lending, consumer leasing, and
equal credit opportunity laws and regulations, as well as state and local motor vehicle finance laws, installment
finance laws, and usury laws.
Claims arising out of actual or alleged violations of law may be asserted against us by individuals or governmental
authorities and may expose us to significant damages or other penalties, including revocation or suspension of
licenses necessary to conduct business and fines.
Environmental, Health, and Safety Laws and Regulations. We are subject to a variety of federal, state, and local
laws and requirements that regulate the environment and public health and safety. Our business involves the use,
handling, and disposal of hazardous or toxic substances, including motor oil, gasoline, transmission fluid, solvents,
lubricants, and other materials. We are subject to compliance with governmental and environmental regulations
concerning the past and current operation and/or removal of aboveground and underground storage tanks containing
these and other substances.
AVAILABILITY OF REPORTS AND OTHER INFORMATION
Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and proxy
statements on Schedule 14A, as well as any amendments to those reports, are available without charge through our
website, carmax.com, as soon as reasonably practicable after filing or furnishing the material to the Securities and
Exchange Commission. The contents of our website are not, however, part of this report.
In addition, our Corporate Governance Guidelines and Code of Conduct, as well as the charters of the Audit
Committee, Nominating and Governance Committee, and Compensation and Personnel Committee, are available to
shareholders and the public through the “Corporate Governance” link of our investor information home page at
investor.carmax.com. Printed copies of these documents are available to any shareholder, without charge, upon
written request to our corporate secretary at the address set forth on the cover page of this report. Any changes to
these documents or waivers of the Code of Conduct are promptly disclosed on our website.