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<SEC-DOCUMENT>0001104659-09-003335.txt : 20090518
<SEC-HEADER>0001104659-09-003335.hdr.sgml : 20090518
<ACCEPTANCE-DATETIME>20090121191326
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-09-003335
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090121

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COPART INC
		CENTRAL INDEX KEY:			0000900075
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500]
		IRS NUMBER:				942867490
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0731

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		4665 BUSINESS CENTER DRIVE
		CITY:			FAIRFIELD
		STATE:			CA
		ZIP:			94534
		BUSINESS PHONE:		7076395000

	MAIL ADDRESS:	
		STREET 1:		4665 BUSINESS CENTER DRIVE
		CITY:			FAIRFIELD
		STATE:			CA
		ZIP:			94534
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>

<html>

<head>





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<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VIA EDGAR</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">January&nbsp;21, 2009</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;H. Christopher Owings<br>
Securities and Exchange Commission</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100 F Street NE<br>
Washington, D.C. 20549</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="99%" style="border-collapse:collapse;width:99.7%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.72%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.72%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Re:</font></b></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.28%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Correspondence from you dated
  December&nbsp;17, 2008 concerning Copart,&nbsp;Inc.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.72%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.28%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;10-K for the Fiscal Year Ended
  July&nbsp;31, 2008</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.72%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.28%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Filed September&nbsp;29, 2008</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.72%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.28%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">File No.&nbsp;001-16565</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.72%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.28%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Proxy Statement on Schedule 14A</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.72%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.28%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Filed November&nbsp;4, 2008</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.72%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="96%" valign="top" style="padding:0in 0in 0in 0in;width:96.28%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">File No.&nbsp;0000-23255</font></b></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ladies and Gentlemen:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On behalf of Copart,&nbsp;Inc. (&#147;Copart&#148; or
the &#147;Company&#148;) this letter is being transmitted in response to comments
received from the staff (the &#147;Staff&#148;) of the Securities and Exchange Commission
(the &#147;Commission&#148;) by letter dated December&nbsp;17, 2008 with respect to the
Company&#146;s Annual Report on Form&nbsp;10-K for the fiscal year ended July&nbsp;31,
2008, filed on September&nbsp;29, 2008, and proxy statement on Schedule 14A
filed November&nbsp;4, 2008.&#160; The
numbering of the paragraphs below corresponds to the numbering of the comments
which, for the Staff&#146;s convenience, we have incorporated into this response
letter.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Form&nbsp;10-K for the Fiscal Year Ended July&nbsp;31, 2008</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Item 5. Market for Registrant&#146;s Common Equity, Related Shareholder
Matters and Issuer Purchases of Equity Securities, page&nbsp;31</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Performance Graph, page&nbsp;33</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">1.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
disclose in a footnote or in another appropriate place the companies that
comprise your peer group. Please see Instruction 5 to Item 201(e)&nbsp;of
Regulation S-K.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to the Staff&#146;s comment, in future filings the Company will
disclose in a footnote the companies that comprise its peer group in accordance
with Instruction 5 to Item 201(e)&nbsp;of Regulation S-K.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Item7. Management&#146;s Discussion and Analysis of Financial Condition and
Results of Operations, page&nbsp;35</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Results of Operations, page&nbsp;37</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">2.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>You
disclose in the description of your business that you believe your business has
grown as a result of acquisitions, increases in the overall volume in the
salvage car market, increases in the amount of revenue generated per sales
transaction resulting from increases in gross selling prices and the addition
of value added services for both buyers and sellers and the growth in
non-insurance company sellers. You also disclose various risks and
uncertainties related to operating risks. Yet, it does not appear that you have
provided an assessment of these trends and uncertainties in your discussion and
analysis to enable a reader to ascertain the likelihood that past performance
is indicative of future performance. In addition, it does not appear that you
have identified and provided a discussion and analysis of the key variables and
other qualitative and quantitative factors which are necessary for an
understanding and evaluation of the business and results of operations through
the eyes of management. Please revise your discussion and analysis to describe
known trends and/or uncertainties that have had or that are reasonably likely
to have a material impact on revenues or income from operations. Please also
provide a discussion and analysis of the key variables and other factors
necessary for an understanding of revenues and operating results. For example,
consider providing operating data regarding the volume of vehicle sales and
revenues per sales transaction in the North American and UK markets for each
year and describe the extent to which increases in same stores in North America
are attributable to increases in prices or to increases in volume or amount of
goods or services sold, or the introduction of new value added services.
Similar enhancements should be made to your discussions and analysis of
operating expenses for each year. Refer to Item 303(a)&nbsp;of Regulation S-K
and the Commission&#146;s Guidance Regarding Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations, Release No 33-8350, available at
www.sec.gov.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to the Staff&#146;s comment, in future filings the Company will
disclose in Management&#146;s Discussion&nbsp;&amp; Analysis (MD&amp;A) the
principal trends and uncertainties known to management to have had, or that
management believes are reasonably likely to have in the future, a material
impact on the Company&#146;s results of operations. Naturally, trends identified in
MD&amp;A would not be exclusive, and the Company would continue to identify
other trends and uncertainties in its risk factor disclosure.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company supplementally informs the Staff that management has
identified four primary trends that it believes are currently having or that
could in the future have a material impact on revenue or income from
operations: commodity pricing, used car pricing, foreign currency exchange
rates and accident frequency.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company believes that commodity pricing, particularly the per ton
price for crushed car bodies, has an impact on the ultimate selling price of
vehicles sold for scrap and vehicles to be dismantled.&#160; Subsequent to harvesting the valuable car
parts </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">by a dismantler, the carcass of the car will often be sold for scrap.
Because a portion of our revenue is based to some extent on the selling price
of the vehicle, fluctuations in the average selling price may lead to
variations in revenue.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company believes that used car pricing has an impact on the
ultimate selling price of those vehicles that are purchased for retail
sale.&#160; Management believes that decreases
in the overall used car pricing will tend to reduce the resale value of
vehicles that Copart processes and reduce the amount that buyers will pay at
auction.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company believes that fluctuations in foreign currency exchange rates
may have an impact on those cars being purchased for export as, for example, a
stronger dollar increases the purchase price paid in our international buyer&#146;s
local currency and may lead to a reduction in the ultimate selling price of a
vehicle.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company cannot know which cars are purchased for scrap,
dismantling, resale or for export. Accordingly, the Company cannot quantify the
specific impact that fluctuations in commodity pricing, used car pricing and
foreign currency exchange rates have on the selling price of vehicles and on
the Company&#146;s revenue.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, the Company believes that fluctuations in accident
frequency may have a material impact on the number of units sold on behalf of
insurance companies since vehicles that are salvaged as a result of a collision
or other type of accident are the primary source of vehicles sold. Accident
frequency can be correlated, in part, with weather conditions. The Company is
not aware of a source of information reported on a contemporaneous basis that would
allow the Company to quantify the impact that fluctuations in accident
frequency have had or could have on the Company&#146;s revenue or consolidated
results of operations.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Further, the Company will in future periods, pursuant to Item 303(a)(3)(iii)&nbsp;of
Regulation S-K, provide a narrative discussion of the extent to which changes
in revenue are attributable to changes in prices or to changes in volume or to
the introduction of new services</font>. Similar enhancements will be
made to the Company&#146;s discussion and analysis of operating expenses in future
periods.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Liquidity and Capital Resources, page&nbsp;40</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">3.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
expand this section to discuss known trends, demands, commitments, events or
uncertainties that will result in or are reasonably likely to result in your liquidity
decreasing or increasing in any material way and provide additional information
about the variability and certainty of cash flows. Also identify and separately
describe internal and external sources of liquidity and briefly discuss any
material unused sources of liquid assets. In addition, describe material
commitments for capital expenditures as of the end of the year, and indicate
the general purpose of such commitments and the anticipated source of funds
needed to fulfill such commitments. Refer to Item 303(a)&nbsp;of Regulation S-K
and the Commission&#146;s </i></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

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</div>
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<div>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Guidance Regarding Management&#146;s Discussion
and Analysis of Financial Condition and Results of Operations.</font></i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to the Staff&#146;s comment, in future filings the Company will
disclose under the caption Liquidity and Capital Resources the principal trends
and uncertainties known to management to have had, or that management believes
are reasonably likely to have in the future, a material impact on the Company&#146;s
liquidity.&#160; The Company will also
identify and describe principal internal or external sources of liquidity and
material unused sources of liquid assets.&#160;
Finally, to the extent applicable, the Company will describe material
commitments for capital expenditures, indicate the general purpose of the
commitments, and the anticipated source of funds.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company supplementally advises the Staff that, historically, the
principal operational factor influencing the Company&#146;s liquidity has been seasonality.&#160; Specifically, during the winter months, the
Company has historically experienced higher inventories as a result of
increased weather-related accident rates, and this trend tends to result in the
consumption of working capital.&#160;
Subsequently, during the spring and summer, the Company&#146;s working
capital position tends to improve as inventories are liquidated and converted
to cash.&#160; The Company notes that it
currently includes disclosure about seasonality in the Liquidity and Capital
Resources sections of its Annual Reports on Form&nbsp;10-K and its Quarterly
Reports on Form&nbsp;10-Q.&#160; Other
principal factors that could affect the Company&#146;s liquidity consist of the same
factors that would be expected to have an impact on the Company&#146;s revenues and
operating results, including the factors described in response to Comment 2
above and the factors discussed in the Company&#146;s risk factor disclosure.&#160; In future filings, the Company will include
additional disclosure under Liquidity and Capital Resources, noting that factors
affecting the Company&#146;s consolidated operating results, such as those discussed
above and under the risk factors caption, would also be expected to have an
impact on liquidity.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As noted in the Company&#146;s current disclosure, the Company&#146;s principal
source of liquidity is existing cash and short-term investment balances and
cash generated by operations.&#160; From time
to time in the past, the Company has raised money through equity or debt
financings but has not raised any material amounts of cash through sales of
equity securities since 2001.&#160; The
Company did recently enter into a $200 million revolving credit facility with
Bank of America, N.A., which is described in the Company&#146;s current
filings.&#160; The Company will continue to
include in Liquidity and Capital Resources disclosure concerning the facility,
including a discussion of debt covenants and potential limitations of the
credit facility.&#160; As of July&nbsp;31,
2008, no amounts were outstanding under the Bank of America credit facility.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As indicated, the Company will make appropriate disclosure of material
commitments for capital expenditures.&#160;
The Company notes, however, that it had no material outstanding
commitments for capital expenditures as of July&nbsp;31, 2008.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Contractual Obligations, page&nbsp;43</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">4.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
disclose whether operating lease obligations include insurance, taxes,
maintenance and other costs required by operating lease agreements. Also,
provide a context for readers to understand the impact of such costs on your
operating lease obligations. See Section&nbsp;IV.A and footnote 46 to the
Commission&#146;s Guidance Regarding Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to the Staff&#146;s comment, in future filings the Company will
disclose whether operating lease obligations include insurance, taxes,
maintenance and other costs required by operating lease agreements.&#160; In addition we will expand the footnote to
provide a context for the readers to understand the impact on such costs on our
operating lease obligations.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Proposed Footnote Language</font></u></b></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company leases certain domestic and
foreign facilities, and certain equipment under noncancelable operating leases.
In addition to the minimum future lease commitments presented, the leases
generally require the Company to pay property taxes, insurance, maintenance and
repair costs which are not included in the table because the Company has
determined these items are not material.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Critical Accounting Policies and Estimates, page&nbsp;44</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">5.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
revise to describe the material implications of uncertainties associated with
the methods, assumptions and estimates underlying your critical accounting
measurements that have had or that you reasonably expect will have a material impact
on financial condition and operating performance and on the comparability of
reported information among periods. Such disclosure should supplement, not
duplicate, the accounting policies disclosed in the notes to the financial
statements. In doing so, please identify those accounting estimates or
assumptions where there is a significant amount of subjectivity involved, the
estimates or assumptions are susceptible to change, and the impact of the
estimates and assumptions on your financial condition or operating performance
is material. Discuss, to the extent material, such factors as how you arrived
at each estimate, how accurate the estimate/assumption has been in the past,
how much the estimate/assumption has changed in the past and whether the estimate/assumption
is reasonably likely to change in the future. We would expect you to provide
quantitative as well as qualitative disclosure when quantitative information is
reasonably available and to provide greater insight into the quality and
variability of information regarding financial condition and operating
performance. Also, since critical accounting estimates and assumptions are
based on matters that are uncertain or difficult to measure, you should analyze
and disclose their specific sensitivity to change, based on other outcomes that
are reasonably likely to occur and would have a material effect. Please refer
to Item 303(a)(3)(ii)&nbsp;of Regulation S-K as well as the </i></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

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<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Commission&#146;s Guidance Regarding Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations.</font></i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to the Staff&#146;s comment, in future filings the Company will
revise its disclosure on critical accounting assumptions and estimates to more
fully comply with Item 303(a)(3)(ii)&nbsp;of Regulation S-K and the Commission&#146;s
Guidance Regarding Management&#146;s Discussion and Analysis of Financial Condition
and Results of Operations and not simply duplicate the accounting policies
disclosed in the notes to the financial statements.&#160; The Company has provided updated language
below for income taxes and retained insurance liabilities as examples of the
types of revisions that will be made in future periods.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Example 1:</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Income Taxes and Deferred Tax Assets</font></b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We account for income taxes in accordance
with SFAS No.109 <i>Accounting for Income Taxes</i>. We
are subject to income taxes in the US, Canada and UK. In arriving at a
provision for income taxes, we first calculate taxes payable in accordance with
the prevailing tax laws in the jurisdictions which we operate; we then analyze
the timing differences between the financial reporting and tax bases of our
assets and liabilities, such as various accruals, depreciation and
amortization. The tax effects of the timing difference are presented as
deferred tax assets and liabilities in the consolidated balance sheet. We
assess the possibility that the deferred tax assets will be realized based on
our ability in generating future taxable income. In the event that it is more
likely than not the full benefit would not be realized from the deferred tax
assets we carry on our consolidated balance sheet, a valuation allowance is to
be established. As of July&nbsp;31 2008, we had approximately $0.6 million of
valuation allowance arising from the net operating losses in states where we
had withdrawn our operations in prior years. To the extent we establish a
valuation allowance or change the amount of valuation allowance in a period, we
reflect the change with a corresponding increase or decrease in our income tax
provision in the consolidated statements of income.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Historically, our income taxes have been
sufficiently provided to cover our actual income tax liabilities among the
jurisdictions we operate in. Nonetheless, our future effective tax rate could
still be adversely affected by the following factors, including the
geographical allocation of our future earnings, the change in tax laws or our
interpretation of tax laws, the changes in governing regulations and accounting
principles, the changes in the valuation of our deferred tax assets and
liabilities and the outcome of the income tax examinations. As a result, we
routinely assess the possibilities of material changes resulting from the
aforementioned factors to determine the adequacy of our income tax provision.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective August&nbsp;1, 2008, we adopted
Financial Interpretation No.&nbsp;48, <i>Accounting
for Uncertainty in Income Taxes-an interpretation of FASB Statement No.&nbsp;109</i>
(FIN&nbsp;48). FIN&nbsp;48 contains a two-step approach to recognizing and
measuring uncertain tax </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

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<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">positions accounted for in accordance with
SFAS No.&nbsp;109, <i>Accounting for Income
Taxes</i>. The first step is to evaluate the tax position for
recognition by determining if the weight of available evidence indicates that
it is more likely than not that the position will be sustained on audit,
including resolution of related appeals or litigation processes, if any. The
second step is to measure the tax benefit as the largest amount that is more
than 50% likely of being realized upon settlement.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although we believe we have adequately
reserved for our uncertain tax positions, no assurance can be given that the
final tax outcome of these matters will not be different. We adjust these
reserves in light of changing facts and circumstances, such as the closing of a
tax audit or the refinement of an estimate. To the extent that the final tax
outcome of these matters is different than the amounts recorded, such
differences will impact the provision for income taxes in the period in which
such determination is made. The provision for income taxes includes the impact
of reserve provisions and changes to reserves that are considered appropriate,
as well as the related net interest Settlement of any particular position could
require the use of cash. In addition, we are subject to the continuous
examination of our income tax returns by various taxing authorities including
the Internal Revenue Service and US states. We regularly assess the likelihood
of adverse outcomes resulting from these examinations to determine the adequacy
of our income taxes provision.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Example 2<b>:</b></font></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Retained Insurance Liabilities</font></b></p>

<p style="margin:0in 0in .0001pt .75in;page-break-after:avoid;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are partially self-insured for certain losses related to medical,
general liability, workers&#146; compensation and auto liability. Our insurance
policies are subject to a $250,000 deductible per claim with the exception of
our medical policy which is $150,000 per claim.&#160;
In addition, each of our policies contains an aggregate stop loss which
limits our ultimate exposure.&#160; Our liability
represents an estimate of the ultimate cost of claims incurred as of the
balance sheet date. The estimated liability is not discounted and is
established based upon analysis of historical data and actuarial estimates. The
primary estimates used in the actuarial analysis include total payroll and
revenue.&#160; Our estimates have not
materially fluctuated from actual results.&#160;&#160;
While we believe these estimates are reasonable based on the information
currently available, if actual trends, including the severity of claims and
medical cost inflation, differ from our estimates, our consolidated financial
position, results of operations or cash flows could be impacted.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Item 7A. Quantitative and Qualitative Disclosures About Market Risk, page&nbsp;47</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">6.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>On
page&nbsp;47 you state that &#147;[a]s the interest rates on a material portion of
our cash and cash equivalents are variable, a change in interest rates earned
on our investment portfolio would impact interest income along with cash flows,
but would not materially impact the fair market value of the related underlying
instruments.&#148; Please clarify if you consider the potential impact on your
interest income and cash flows from a potential change in interest rates to be
material. If the impact is </i></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

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<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">material, please disclose the information
regarding this market risk required under Item 305(a)&nbsp;and (b)&nbsp;of
Regulation S-K. If you do not believe you are required to disclose this
information, please advise why you believe you are not required to disclose it.</font></i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company supplementally informs that Staff that during the year the
Company maintained an average cash balance of $109.7 million on which the
Company generated an average yield of 3.85%.&#160;
Accordingly, management believes that a 10% change in our average yield
would not have a material impact on net income and operating cash flows.&#160; We will disclose this in future filings.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">7.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>On
page&nbsp;47 you indicated that you have exposure to foreign currency
transactions gains and losses arising from the translation of the assets and
liabilities of your Canadian and U.K. subsidiaries to U.S. dollars during
consolidation. Please discuss what actions you take, if any, to mitigate this
particular market risk or advise why you believe you are not required to
disclose it. Please refer to Item 305(b)&nbsp;of Regulation S-K.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company supplementally informs the Staff that the Company currently
takes no action to mitigate our exposure to foreign currency transactions gains
and losses arising from the translation of the assets and liabilities of our
Canadian and UK subsidiaries to US dollars during consolidation, as disclosed
in Item 7A, Quantitative and Qualitative Disclosures about Market Risk.&#160;&#160; The Company will disclose in future filings
any changes to our risk mitigation practices related to foreign currency
exchange rates.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Financial Statements</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Note (1)&nbsp;Summary of Significant Accounting Policies, page&nbsp;64</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Foreign Currency translation, page&nbsp;64</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">8.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
tell us, and disclose if material, the aggregate transaction gain or loss
included in determining net income for each year presented. Please refer to
paragraph 30 of SFAS 52.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company supplementally informs the Staff that the aggregate amounts
of loss from foreign currency translation included in determining net income
were $36,000 in 2008 and less than $1,000 in each 2007 and 2006.&#160; These amounts are immaterial and,
accordingly, were not separately disclosed in the financial statements or
footnotes. The Company will disclose in future filings, if material, the
aggregate transaction gain or loss in determining net income.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Revenue Recognition, page&nbsp;65</font></u></i></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">9.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
separately state net revenues from vehicle sales, remarketing services and
other sources, such as annual registration fees, on the face of the
consolidated statements of income. Please also separately state costs and
expenses applicable to vehicle sales, remarketing services and other revenue
sources. Refer to Rule&nbsp;5-03(b)&nbsp;of Regulation S-X. Please note that
income, and related costs and expense, from each class described in Rule&nbsp;5-03(b)&nbsp;of
Regulation S-X which is less than 10 percent of total revenues may be combined.
Please show us what your revised disclosure would look like for each year presented
and tell us the classes combined pursuant to Rule&nbsp;5-03(b).</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s revenues are principally generated through the
remarketing of vehicles on behalf of sellers or, in some cases, for the Company&#146;s
own account though the Company&#146;s internet selling platform Virtual Bidding
Second Generation (VB(2)).&#160; Whether
vehicles are remarketed on behalf of sellers or on our account, the receiving,
recording and handling processes are identical for both types of vehicles. All
vehicles are sold on the same Internet auction platform to the same buyers with
the same terms and conditions.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further, the Company&#146;s obligation to purchase a vehicle does not arise
until the insurance company finalizes settlement of the claim with its
insured.&#160; At this time, the vehicle is
placed in the facility&#146;s weekly auction and the vehicle becomes the property of
the buyer at the time of the award to the high bidder at the time of the
auction.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has considered the requirement pursuant to rule&nbsp;5-03(b)&nbsp;to
separately present different classes of revenues and related costs on the
Company&#146;s statements of income.&#160; Given
the above considerations, the Company has determined that revenues recognized
related to the remarketing of vehicles on behalf of sellers or the Company&#146;s
own account comprise a single class of revenues as the services provided and
the processes implemented are identical for both types of transactions.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other than the fees charged specifically for remarketing vehicles,
there are no other classes of revenue that represent over 10% of total revenue.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">10.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
tell us the terms and conditions of the customer agreements related to vehicles
purchased and remarketed on your own behalf through your auction process.
Please specifically address terms and conditions with respect to delivery,
transfer of title and assumption of the risks and rewards of ownership by
customers. Also explain to us your rationale for recognizing revenue when a
legal binding contract is formed upon high bid acceptance and your basis for
concluding that delivery has occurred at that point. Refer to SAB Topic 13. In
addition, please disclose the terms of the contracts that specify when
customers take title to the vehicles and assume the risks and rewards of
ownership.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company supplementally provides the Staff with the following
information with respect to remarketing transactions between the Company and
its buyers:</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

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<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please see key excerpts from the Company&#146;s Buyer Terms and Conditions
attached hereto as <u>Exhibit&nbsp;10-A</u> which provide information related
to delivery, transfer of title and assumption of the risks and rewards of
ownership by customers.&#160;&#160; In addition,
please refer to the excerpts from the Company&#146;s Revenue Recognition Policy
attached hereto as <u>Exhibit&nbsp;10-B</u> which set forth the underlying
legal analysis with respect to (i)&nbsp;creation of a legally binding contract,
(ii)&nbsp;transfer of risk, and (iii)&nbsp;the Company&#146;s responsibility as
bailee.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has considered the guidance in SAB Topic 13 specifically as
it relates to delivery, transfer of title and the assumption of the risks and
rewards of ownership by the buyer:</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i>Persuasive evidence of arrangement exists &#150; </i>Upon high bid
acceptance, a binding agreement is established between the Company and the
buyer.&#160; This binding agreement stipulates
the terms of the transaction including sales price and conveyance of rights and
obligations.</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i>Delivery has occurred or services have been rendered</i> - Under
the terms of the Company&#146;s agreement with a buyer, and pursuant to the legal
analysis attached hereto as <u>Exhibit&nbsp;10-B</u>, the buyer immediately
takes valid title and risk of loss to the vehicle upon high bid acceptance with
the buyers rights to the vehicle &#147;As-Is, Where-Is&#148;.&#160; The buyer is responsible for picking up the
vehicle from the Company&#146;s facility, generally within four [4] business days
from high bid acceptance.</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i>The seller&#146;s price to the buyer is fixed or determinable &#150; </i>Upon
high bid acceptance, the price at which the vehicle is being sold to the buyer
has been determined.</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i>Collectibility is reasonably assured &#150; </i>The Company assesses
the collectability of amounts due from buyers as transactions occur and, based
on historical analyses regarding buyer non-performance, the Company has
determined that collectability is reasonably assured upon high bid acceptance.</p>

<p style="margin:0in 0in .0001pt 1.5in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Based on the Company&#146;s legal analysis (as described in the excerpt from
the Company&#146;s Revenue Recognition Policy attached hereto as <u>Exhibit&nbsp;10-B</u>),
the terms and conditions of the Company&#146;s agreement with the buyer, and the
Company&#146;s considerations of the guidance contained in SAB Topic 13, the Company
believes it has completed its obligations under the agreement with title, risk
of loss, and the risks and rewards of ownership transferring to the buyer at
the time of high bid acceptance.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">11.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>It
appears from your disclosure in the fifth paragraph that post-sale services represent
the undelivered item and that you are allocating consideration to </i></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

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<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">post-sale services using the reverse residual
method as opposed to using the residual method to allocate consideration to
auction services, which appear to represent the delivered item. Please tell us
why your measurement and allocation of consideration to sales services and
post-sale services complies with paragraph 12 of EITF 00-21. In addition,
clarify your disclosure as appropriate.</font></i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company explicitly states in its disclosure that &#147;fees for the
post-sale services are recognized upon successful completion of those services
using the residual method.&#148;&#160; This method
is mandated by paragraph 12 of EITF 00-21 which holds that: &#160;If there is objective and reliable evidence of
fair value (as discussed in paragraph 16) for all units of accounting in an
arrangement, the arrangement consideration should be allocated to the separate
units of accounting based on their relative fair values (the relative fair
value method), except as specified in paragraph 13. However, there may be cases
in which there is objective and reliable evidence of the fair value(s)&nbsp;of
the undelivered item(s)&nbsp;in an arrangement but no such evidence for the
delivered item(s). In those cases, the residual method should be used to
allocate the arrangement consideration. Under the residual method, the amount
of consideration allocated to the delivered item(s)&nbsp;equals the total
arrangement consideration less the aggregate fair value of the undelivered
item(s). The &#147;reverse&#148; residual method (that is, using a residual method to
determine the fair value of an undelivered item) is not an acceptable method of
allocating arrangement consideration to the separate units of accounting,
except as described in paragraph 13.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The post-sale service provided by the Company is the loading of a
vehicle on to the buyer&#146;s transport.&#160;
This service&#146;s fair value was established by objective and reliable
evidence of fair value pursuant to paragraph 16 of EITF 00-21.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Note (10)&nbsp;Long-Term Debt, page&nbsp;80</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">12.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>We
note that your Credit Facility contains restrictive covenants related to
dividends, distributions and redemption of capital stock. As such, please
disclose the amount of retained earnings or net income restricted or free of
restrictions. Please refer to Rule&nbsp;4-08(e)(1)&nbsp;of Regulation S-X.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company supplementally informs the Staff that although the Credit
Facility contains restrictions with respect to investments, mergers and
acquisitions, dividends and distributions and redemptions of capital stock,
these restrictions become effective only after the Company&#146;s debt to EBITDA
ratio exceeds 1.0:1.0.&#160; At July&nbsp;31,
2008, the debt to EBITDA ratio was less than 1.0:1.0.&#160; This information will be disclosed in future
filings.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Note (14) Segments and Other Geographic Information, page&nbsp;87</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">13.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>Please
tell us how you have determined that your operations are managed as one
operating segment. In this regard, it appears that your U.S., Canada and United
Kingdom operations may fit the definition of separate operating segments.
Please </i></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

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<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">ensure you tell us the operations for which
discrete financial information is available as well as the level of financial
information reviewed by your chief operating decision maker to make decisions
about resources to be allocated to various business components and assess
performance. Also, please tell us the basis of the structure of your
organization and whether you have chosen to organize the business around
differences in products and services or geographic areas. Please refer to
paragraphs 10-15 of SFAS 131.</font></i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.1pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company was founded in 1982 by Willis J.
Johnson, founder and CEO when he purchased a single salvage facility in California.&#160; The Company continued to grow by acquiring
and opening new salvage facilities.&#160; From
1982 to 1994, Mr.&nbsp;Johnson added an additional 14 salvage facilities
primarily on the West Coast.&#160; In 1994,
with 15 salvage facilities, the Company completed its initial public offering
and continued to acquire additional salvage facilities in order to build a
salvage company with national coverage to meet the demands of its vehicle
suppliers, primarily national insurance companies, and its international buyer
base.&#160; The Company maintained, at the end
of its fiscal year 2008, 131 facilities, or yards, in the U.S., 2 facilities in
Canada and 10 facilities in the United Kingdom (UK), all of which were used for
the storage, processing and remarketing of salvage vehicles.&#160; All vehicles stored at these facilities are
ultimately remarketed on behalf of the sellers, or in some cases for the
Company&#146;s own account, to similar buyers that consist principally of licensed
vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers and
exporters.&#160; The vehicle remarketing
services are conducted through weekly auctions on the Company&#146;s internet based
selling platform Virtual Bidding Second Generation (VB</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">2</font>).&#160; Prospective buyers from approximately 100
different countries have the ability to place bids on the Company&#146;s weekly
auctions.&#160; Buyers have limited direct
contact with the storage yards other than to pick up the vehicle purchased and,
in some cases, to make payments.&#160; All
facilities utilize our internal management information system called &#147;CAS&#148;.&#160; The CAS system requires the use of uniform
processes and procedures at all locations.</p>

<p style="margin:0in 0in .0001pt 53.1pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.1pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As previously indicated, the Company has historically been very
successful in growing its salvage business by adding additional locations in
the United States.&#160; The Company believes
its UK and Canadian expansion is an extension of that strategy in a different
geographical location. These additional locations provide Copart with the
ability to gain additional supply of salvage vehicles from sellers to be
remarketed on the Company&#146;s VB</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">2</font>&#160;internet auction platform.&#160; Although the UK and Canadian yards are
located internationally, these yards are managed and monitored by corporate
executive management and operate under pre-existing Copart company policies and
procedures.&#160; In addition all yards
provide similar vehicle remarketing services and use the same processes for
storing and remarketing vehicles.</p>

<p style="margin:0in 0in .0001pt 53.1pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 53.1pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company determines its segment reporting
in accordance with Statement of Financial Accounting Standards No. 131, <i>Disclosures about Segments of an Enterprise and Related Information</i>
(SFAS 131), and has historically defined its operating segments using the
&#147;management approach&#148; described in paragraph 4 of SFAS 131 based on the
internal structure of the Company.&#160; Each
salvage yard is run by a general manager with oversight by regional managers
who report to one of four Vice Presidents of Operations or, in the case of the
UK, to a Managing Director, which is equivalent to the position of a Vice President
of Operations in the U.S.&#160; These five
report to the Chief Operating Officer who in turn reports to the Executive Vice
President.&#160; The Executive Vice President
reports to the President who reports to the CEO.&#160; The CEO is the Company&#146;s chief operating decision
maker (CODM), as defined in SFAS 131 and as described below.</font></p>

<p style="margin:0in 0in .0001pt 53.1pt;text-indent:0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:12.0pt 0in .0001pt 53.3pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">From fiscal 2004 through fiscal 2006, the
Company reported two operating segments: the salvage operating segment and the
Motors Auction Group (MAG) operating segment.&#160;
The MAG segment sold used cars via a live auction to the general public
at 6 locations and had separate segment management that reported directly to
the CODM.&#160; Subsequent to disposing of its
MAG operating segment during fiscal year 2006, the Company retained the salvage
segment as its only operating segment. </font></p>

<p style="font-size:10.0pt;margin:12.0pt 0in .0001pt 53.3pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s CEO is responsible for making
decisions about resources to be allocated within the Company; as such he is the
deemed the CODM in accordance with paragraph 12 of SFAS 131.&#160; The Company maintains financial information
that presents results of operations at the yard level. This data is used by the
general manager, regional managers and the Chief Operating Officer for performance
reviews.&#160; The CODM receives and reviews
financial information that presents the results of operations for the salvage
segment on a consolidated basis and on a geographic basis, showing North
America (U.S. and Canada) and the UK separately.&#160; Balance sheet and cash flow information are presented
to the CODM on a consolidated basis.&#160; The
Company notes that, while results of operations for both the North America and
UK operations are discreetly provided to and reviewed by the CODM, the overall
decision making for the allocation of resources is made for the salvage segment
on a consolidated, rather than geographic, basis.&#160; The Company determined that its segment
reporting based on &#147;products and services&#148; (i.e., salvage vehicle remarketing
services, and, formerly, its MAG operations), as described in paragraph 15 of
SFAS 131, is the appropriate basis for its segment reporting and is consistent
with the guidance contained in paragraphs 13 - 15 of SFAS 131 to address
situations where more than one type of financial information is reviewed by the
CODM.&#160; In addition, the international
buyer base (i.e. customers in 100 countries bid on the Company&#146;s auctions using
VB</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">2</font>),
extensive integration of IT platforms, and common executive management shared
by all Copart yards in North America and the UK further support the
determination of a single operating segment for remarketing of salvage
vehicles.</p>

<p style="margin:0in 0in .0001pt 53.1pt;text-indent:0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">14.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>We
note that your revenues include, among others, vehicle sales, sales
merchandising fees, transportation fees, buyer services fees and annual
membership fees. Please disclose revenues for each group of similar products
and services for each year presented or tell us why you believe disclosure of
information about products and services is not required. If providing the
information is impracticable, please disclose that fact. Please refer to
paragraph 37 of SFAS 131.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company supplementally informs the Staff that it has one class of
revenue: vehicle remarketing.&#160; Items like
transportation fees, sales merchandising fees and buyer service fees are all
part of the process of remarketing cars on behalf of sellers or on the Company&#146;s
own account and are aggregated.&#160; On a
stand-alone basis, no service fee, other than remarketing transaction fees,
represents more than 5% of total revenue and, in fact, transportation fees and
annual registration fees represented 4.0% and 0.7% of total revenue in 2008,
respectively.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Definitive Proxy Statement on Schedule 14A</font></u></i></b></p>

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<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Executive Compensation, page&nbsp;18</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Compensation Discussion and Analysis, page&nbsp;18</font></u></i></p>

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<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">15.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>Please discuss why the
compensation committee determined that Mr.&nbsp;Johnson and Mr.&nbsp;Adair were
the only named executive officers eligible to participate in your Executive
Bonus Plan for the fiscal year 2008.&#160;
Also, please discuss eligibility requirements of the Executive Bonus
Plan.&#160; If no specific eligibility
requirements exist, please discuss the factors that the compensation committee
considers when deciding if someone is eligible to participate in the plan.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Executive
Bonus Plan (the &#147;Plan&#148;), as adopted by the Board of Directors and approved by
the shareholders of the Company in 2005, is intended to permit the grant of
awards that qualify as performance-based compensation under Section&nbsp;162(m)&nbsp;of
the Internal Revenue Code (the &#147;Code&#148;).&#160; Section&nbsp;162(m)&nbsp;of
the Code limits the tax deductibility of non-performance based compensation
paid to our Chief Executive Officer and to each of the four most-highly
compensated officers to $1 million per person, unless certain requirements are
satisfied.&#160; Under the terms of the Plan,
the compensation committee has the sole discretion to select any employee of
the Company or an Affiliate (as defined in the Plan) to participate in a
performance period established under the Plan.&#160;
Because Mr.&nbsp;Johnson and Mr.&nbsp;Adair have historically been the
only executive officers whose compensation approached the $1 million threshold
under Section&nbsp;162(m), the committee determined that Messrs.&nbsp;Johnson
and Adair would be the only named executive officers eligible to participate in
the Plan for 2008.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to
the Staff&#146;s comment, in applicable future filings, the Company intends to
discuss the eligibility requirements of the Plan or, if none exist, the factors
the compensation committee considers when deciding whether someone is eligible
to participate in the Plan.</font></p>

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<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">16.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>In your &#147;Compensation
Discussion and Analysis&#148; section, you indicate that you consider a named
executive officer&#146;s individual performance in setting compensation.&#160; Please discuss how you structure and
implement specific forms of compensation to reflect the named executive officer&#146;s
individual performance or contribution and describe the individual elements of
performance or contribution that you have taken into consideration.&#160; For example, in the first paragraph on page&nbsp;22
you indicate that the discretionary bonuses were based, in part, on individual
and corporate performance.&#160; Please
discuss the specific elements of individual performance or contribution that
you have taken into consideration.&#160; See
Item 402(b)(2)(vii)&nbsp;of Regulation S-K.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to
the Staff&#146;s comment, in future filings, the Company will provide additional
disclosure concerning the process of structuring and implementing specific
forms of compensation and the specific elements of performance and contribution
that are taken into consideration.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

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<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company
supplementally advises the Staff that as part of the Company&#146;s annual
goal-setting and performance measurement process, each executive officer
proposes qualitative individual goals and objectives for the coming fiscal year
that are intended to (i)&nbsp;promote continuing organizational and process
improvements, and (ii)&nbsp;contribute to the financial strength of the
Company.&#160; These proposed goals are then
reviewed with each executive officer and approved by the Company&#146;s Chief
Executive Officer, President and Executive Vice President. The Compensation
Committee does not participate in the setting of qualitative goals and
objectives for the executive officers.&#160;
Each officer&#146;s goals are specifically tailored to his or her function
and vary from year to year.&#160; For example,
for fiscal year 2008, Mr.&nbsp;Franklin&#146;s individual performance goals related
to his oversight of the finance, compliance, treasury and internal audit
functions; Mr.&nbsp;Mitz&#146;s individual performance goals related to improving
operational efficiencies and business processes and the integration and
expansion of our international operations; and Mr.&nbsp;Bauer&#146;s individual
performance goals focused on systems development and process improvement.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As described
in the CD&amp;A on page&nbsp;18 in the section entitled &#147;Role of Management and
Outside Consultants in Compensation Process,&#148; our CEO reviews the actual
performance of the executive officers against their individual performance
goals at the end of the applicable fiscal year and our CEO and President then
recommend to the compensation committee adjustments to the executive officers&#146;
base salaries, bonuses and equity awards, which then reviews the
recommendations and makes a final determination..&#160; Assessment of individual performance may
include objective criteria, such as the execution of projects in a timely
manner, but is largely subjective.&#160; The
compensation committee does not apply a pre-established formula to determine
the extent to which our named executive officers achieve their individual
performance goals.</font></p>

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<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">17.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>On page&nbsp;19 you state
that &#147;[t]he compensation committee believes that a substantial portion of an
executive officer&#146;s compensation should be performance-based, whether in the
form of cash bonus or equity compensation.&#148;&#160;
Please expand your discussion to clarify your statement since it would
appear all compensation would be based on performance.&#160; If you are referring to incentive
compensation, please discuss the basis for their belief.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to
the Staff&#146;s comment that all compensation appears to be based on performance,
the Company will clarify its disclosure in future filings.&#160; The Company does not believe, however, that
all forms of compensation are performance based.&#160; Specifically, base salaries are not paid
contingent on performance although annual adjustments would take into
consideration individual performance as well as &#147;competitive factors . . .
[and] our budget requirements&#148;.&#160; (See the
last sentence of the first paragraph under the heading &#147;Base Salary&#148; on page&nbsp;19
of our proxy statement.)&#160; In addition,
equity-based incentive grants are based in part on &#147;competitive factors, the
individual&#146;s current level of compensation and equity participation, and the
recommendation of our chief executive officer and president&#148; in addition to </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

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<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">performance.&#160; (See the last sentence of the first paragraph
on page&nbsp;22 of our proxy statement.)</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">18.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>In the last paragraph on page&nbsp;19
you state that &#147;[a]lthough the committee has historically not identified
specific financial performance targets (except in connection with the Executive
Bonus Plan, as discussed below), its annual analysis has focused on
quantitative factors such as trends in our revenues and earnings per share.&#148;&#160; Please expand this section to discuss all the
quantitative factors that you consider.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to
the Staff&#146;s comments, in future filings, the Company will provide expanded
disclosure concerning the quantitative factors considered by the compensation
committee in connection with making compensation determinations.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company
supplementally advises the Staff that Copart&#146;s Board of Directors reviews
management&#146;s detailed operating plan for each fiscal year.&#160; As part of its annual determination of
compensation levels for our executive officers, the compensation committee then
reviews the Company&#146;s actual results against the operating plan for the
applicable fiscal year with a focus on revenue and earnings per share.&#160; Please see the answer to question 19 below
for additional information with respect to the compensation committee&#146;s
consideration of quantitative factors when determining whether the Company&#146;s
levels of executive compensation program are reasonable and appropriate.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">19.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>In the first full paragraph
on page&nbsp;20 you state &#147;[t]he committee believes that growth in executive
compensation at Copart has been appropriately correlated with the substantial
growth in our business.&#148;&#160; Please expand
this section to discuss the basis for the compensation committee&#146;s belief.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to
the Staff&#146;s comments, in future filings, the Company will provide expanded
disclosure concerning the correlation between growth in its business and
increases in executive compensation, if such discussion is appropriate in the
context of the compensation committee&#146;s decisions related to the Company&#146;s
executive compensation program for the period covered by the CD&amp;A.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company
supplementally advises the Staff that as noted in the response to question 18
above, the compensation committee reviews the Company&#146;s actual results against
management&#146;s operating plan for each fiscal year, with a focus on revenue and
earnings per share.&#160; While the
compensation committee does not take a formulaic approach to setting
compensation levels for our executive officers, the committee takes into
consideration as part of its assessment whether or not the Company has met or
exceeded its operating plan for a particular fiscal year when making its
determinations of appropriate levels of executive compensation for that year.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>

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<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please see the
following chart which (i)&nbsp;compares Copart&#146;s fiscal year 2004 and 2008
revenues and earnings per share (diluted), and cash compensation paid to our
Chief Executive Officer and President, and (ii)&nbsp;supports the assertion
that growth in executive compensation has been &#147;appropriately correlated&#148; with
the growth in the Company&#146;s business, as measured by revenue and earnings per
share:</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="90%" style="border-collapse:collapse;margin-left:.75in;width:90.0%;">
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  <td width="47%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:47.44%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Item</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">FY2004</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="15%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">FY2008</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="12%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">%&nbsp;increase</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.12%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:47.44%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revenue</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$391 million</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$784.8 million</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100.7</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.44%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Earnings per share (diluted)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$0.86 per share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$1.75 per share</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">103.5</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:47.44%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash compensation of CEO</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$1.21 million</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$1.8 million</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">48.8</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
 <tr>
  <td width="47%" valign="top" style="padding:0in 0in 0in 0in;width:47.44%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash compensation of President</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$838,500</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="15%" valign="bottom" style="padding:0in 0in 0in 0in;width:15.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$1.65 million</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.78%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="12%" valign="bottom" style="padding:0in 0in 0in 0in;width:12.0%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">96.8</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">%</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">20.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>In the third full paragraph
on page&nbsp;21 you indicate that the compensation committee can establish
target awards based on achievement of established goals including, but not
limited to earnings per share, operating cash flow, operating income etc.&#160; Please expand your discussion to discuss why
the compensation committee selected revenue growth as its sole performance goal
and please describe how this performance goal aligns the interests of
executives and shareholders.&#160; Also,
please discuss how the compensation committee determined that a 5% revenue
growth goal was an appropriate target beyond their determination that the
attainment of such a goal would &#147; . . . require substantial management time and
attention.&#148;</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to
the Staff&#146;s comments, in future filings, the Company will provide expanded
disclosure concerning the compensation committee&#146;s determinations with respect
to performance goals.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company
supplementally advises the Staff that management considers revenue a key metric
when measuring Company performance.&#160;
Management uses increases or decreases in revenue to assess how well the
Company is performing in four important areas:&#160;
(1)&nbsp;whether the Company has been successful in its efforts to
expand its market; (2)&nbsp;whether the Company has been able to retain
existing suppliers; (3)&nbsp;whether the Company has been able to successfully
offer new products and services; and (4)&nbsp;whether the Company has been able
to increase its revenue per transaction.&#160;
The compensation committee chose revenue growth as its sole performance
measure under the Executive Bonus Plan because it believes revenue is the
simplest measure to assess the success of both the Company&#146;s business strategy
and its operating efficiency.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
compensation committee and management believe that strong financial performance
by Copart, on a sustained basis, is an effective means of enhancing long-term
shareholder returns, and that revenue growth is one effective measure of the
Company&#146;s financial performance.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>

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<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In response to
the Staff&#146;s comment asking for additional discussion supporting the choice of a
performance goal of 5% revenue growth in North America, the Company directs the
Staff to the last two sentences on page&nbsp;20 of the CD&amp;A which read in
full as follows:&#160; &#147;In particular, with
our acquisition of Universal Salvage plc in the UK, the geographic scope and
complexity of our business expanded substantially.&#160; In order to achieve the performance goals
under the 2008 bonus plan, our executive officers were required to manage and
grow our business in North America while at the same time integrating our
recent UK acquisitions into our existing businesses, including our Internet
auction business.&#148;&#160;&#160; The Company
supplementally informs the Staff that, as disclosed in our Form&nbsp;10-K for
the fiscal year ended July&nbsp;31, 2008, we had no experience operating
outside of North America prior to our UK acquisition.&#160; As a result, when setting the revenue target
the compensation committee took into consideration substantial uncertainties related
to the resources and management attention required to simultaneously and
successfully expand our operations on an international scale and grow revenue
in existing operations.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">21.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160; </font>Please discuss if you have
any equity or other security ownership requirements or guidelines (specifying
applicable amounts and forms of ownership), and any policies regarding hedging
the economic risk of such ownership.&#160;
Please refer to Item 402(b)(xiii) of Regulation S-K.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h5 style="font-style:italic;font-weight:bold;margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;font-weight:normal;">In
response to the Staff&#146;s comments asking for disclosure of any equity or other
security ownership requirements or guidelines, please see the second sentence
of the last paragraph on page&nbsp;21 of our proxy statement under the heading &#147;Equity
Incentive Plans&#148; which reads in full as follows:&#160; &#147;We have not adopted any specific stock
ownership guidelines for our executive officers or directors.&#148; While the
Company has not adopted any specific stock ownership guidelines for our
executive officers or directors, the Company&#146;s executive officers and directors
do own a substantial portion of the Company&#146;s common stock (28.8% as of October&nbsp;16,
2008, as set forth in the table entitled &#147;Security Ownership of Certain
Beneficial Owners and Management&#148; on page&nbsp;11 of the proxy statement).</font></i></b></h5>

<h5 style="font-style:italic;font-weight:bold;margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></b></h5>

<h5 style="font-style:italic;font-weight:bold;margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;font-weight:normal;">The
Company has adopted a policy prohibiting any member </font></i></b><font size="2" style="font-size:10.0pt;font-style:normal;font-weight:normal;">of the Board of Directors,
officer, employee, consultant or other person associated with Copart from
trading in any interest or position relating to the future price of Copart
securities, such as a put, call or short sale, or </font><font size="2" style="font-size:10.0pt;font-style:normal;font-weight:normal;">using
Copart stock as collateral for margin loans</font><font size="2" style="font-size:10.0pt;font-style:normal;font-weight:normal;">.</font></h5>

<h5 style="font-style:italic;font-weight:bold;margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></i></b></h5>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will disclose in applicable future filings any policies
regarding hedging the economic risk of such ownership, in accordance with Item
402(b)(2)(xiii) of Regulation S-K.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">***</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Copart further acknowledges that:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Copart is responsible for the
adequacy and accuracy of the disclosure in the filing;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>

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</div>
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<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Staff comments or changes to
disclosure in response to Staff comments do not foreclose the Commission from
taking any action with respect to the filing; and</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Copart may not assert Staff comments
as a defense in any proceeding initiated by the Commission or any person under
the federal securities laws of the United States.</p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please contact the undersigned at (707) 639-5000
with any questions regarding the above.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sincerely,</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Paul A. Styer</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paul A. Styer</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Vice President and General Counsel</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>

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<h4 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h4>

<h4 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;10-A</font></u></b></h4>

<h4 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h4>

<h4 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Excerpts from Buyer Terms and Conditions</font></b></h4>

<h4 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h4>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Risk of Loss</u>.&#160; Buyer takes full responsibility and
assumes all risk of loss for all vehicles purchased from the time Copart
accepts Buyer&#146;s bid.&#160; From and after
acceptance of Buyer&#146;s bid (for vehicles located at a Copart facility) Buyer
acknowledges that Copart is acting as bailee of Buyer&#146;s vehicle until such time
as the vehicle is removed from Copart&#146;s premises.&#160; Buyer agrees that under the terms of the
bailment, 1) Copart shall not be responsible for damage to or loss of the
vehicle or parts thereof due to operational procedures in place at all Copart
facilities, from acts of theft or vandalism, or acts of God; 2) Copart shall
only be responsible for damage to or loss of the vehicle or parts thereof
caused by the direct willful or grossly negligent act or omission of Copart;
and 3) Copart shall not be responsible for any claim of damage made after the
vehicle has left Copart&#146;s premises regardless of whether Buyer, or any person
on Buyer&#146;s behalf such as Buyer&#146;s agents, employees, or representatives, pick
up the vehicle.&#160; Once a vehicle is
removed from Copart&#146;s premises it is accepted AS-IS, and under no circumstances
will Copart be liable for subsequent claims of damage or loss of any kind or
nature whatsoever.&#160; In the event Copart
is responsible, damages shall be limited to the lesser of i) the amount of the
diminution in value of the vehicle as reasonably estimated by Copart, or ii)
the purchase price (in which case Buyer shall return the vehicle to
Copart).&#160; Copart may, in its sole
discretion, resell the vehicle at a Copart sale, and the difference between the
original sale price and the resale price shall be conclusive as to the amount
of diminution of value, if any.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font face="Times New Roman">All vehicles sold through Copart auctions
are sold <b>&#147;AS-IS WHERE-IS,&#148; WITHOUT ANY WARRANTY,
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF FITNESS FOR A
PARTICULAR PURPOSE OR MERCHANTABILITY</b>.&#160; The term &#147;Vehicles&#148; shall mean all items
posted for sale on Copart&#146;s Website, including but not limited to cars, trucks,
motorcycles, boats, jet skis, industrial equipment, homeowners salvage,
trailers, RV&#146;s, etc. Copart and its vehicle suppliers expressly disclaim the
accuracy or completeness of any and all information provided to buyers
regarding vehicles, whether provided in written, verbal, or digital image form
(&#147;Vehicle Information&#148;).&#160; Vehicle
Information provided by Copart and its vehicle suppliers is for convenience
only.&#160; Buyers shall not rely on Vehicle
Information in deciding whether or how much to bid on a vehicle offered for
sale at a Copart auction.&#160; Vehicle
Information includes but is not limited to: year, make, model, condition, ACV,
damage amount, damage type, drivability, accessories, mileage, odometer
disclosures, vehicle identification number (&#147;VIN&#148;), title, repair history,
title history, and total loss history.&#160;
Copart and its vehicle suppliers expressly disclaim any and all
representations, warranties, and guarantees regarding vehicles sold at Copart
auctions.&#160; Copart does not guarantee that
keys are available for any vehicle sold through Copart auctions, regardless of
whether keys are present in online vehicle images, or were present in the
vehicle prior to the time of purchase.&#160; </font></p>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>

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<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certain jurisdictions permit vehicles to be sold with missing VIN
plates, and as a result Copart does not guarantee that vehicles are equipped
with any or all VIN plates. Copart does not guarantee that vehicles meet or can
be modified to meet local emission and/or safety requirements. It is the sole
responsibility of Buyer to ascertain, confirm, research, inspect, and/or
investigate vehicles and any and all information regarding the type, condition,
status, and history of vehicles prior to bidding on them.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" face="Times New Roman" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u><font face="Times New Roman">Relist Fees</font></u><font face="Times New Roman">. In the event a vehicle is not paid for
within the time specified by the Copart facility where the vehicle was sold,
Buyer agrees that Copart may, in its sole and absolute discretion, cancel the
sale, relist the vehicle for sale, and Buyer shall be responsible to pay a relist
fee of the greater of $400.00 or 10% of Buyer&#146;s bid, plus any collection costs,
including court costs and reasonable attorney&#146;s fees. Buyers causing excessive
vehicles to be relisted are subject to suspension or revocation of their
bidding privileges.</font></p>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;10-B</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Excerpts from the Company&#146;s Revenue Recognition Policy:</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<h2 style="font-weight:bold;margin:0in 0in .0001pt .75in;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Buyer Sales Fee</font></b></h2>

<h2 style="font-weight:bold;margin:0in 0in .0001pt .75in;page-break-after:avoid;"><b><font size="2" face="Times New Roman">&nbsp;</font></b></h2>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Policy &#150; </font></b>Copart
recognizes buyer sales fees at the time of the sale because:</p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.05in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The auction process creates a binding
legal agreement between the buyer and the seller, the binding agreement being
the product of Copart&#146;s auction service (see below &#150; <b>Creation of
Contract</b> under Legal Analysis and <b>Item 1 in
Excerpts from Buyer Terms and Conditions</b>).</p>

<p style="margin:0in 0in .0001pt 1.05in;text-indent:-.3in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.05in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>At the time the gavel falls, risk of
loss is transferred to the buyer (see below &#150; <b>Transfer of
Risk under Legal Analysis).</b></p>

<p style="margin:0in 0in .0001pt 1.05in;text-indent:-.3in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.05in;text-indent:-.3in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any cancellation of the transaction
is at the sole discretion of Copart (see below &#150; <b>Item 3 in
Excerpts from Buyer Terms and Conditions</b>) and is done only to
mitigate damages (See below &#150; <b>Item 1 in Excerpts from
Buyer Terms and Conditions</b>) that have arisen as a result of Copart&#146;s
responsibility as a bailee for the buyer after the auction is concluded (see
below &#150; <b>Responsibility of Bailee under Legal Analysis</b>).</p>

<p style="margin:0in 0in .0001pt 1.05in;text-indent:-.3in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Legal Analysis</font></b></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.05in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Creation of Contract</font></b>
- - When a vehicle is sold &#147;without reserve&#148; (also known as an &#147;absolute auction&#148;)
at Copart, a contract between the seller and the buyer exists once the high bid
is acknowledged on VB(2), as indicated by the &#147;SOLD&#148; message that is displayed
when no higher bids are received. This is because in an auction held &#147;without
reserve,&#148; the opening of bids by an auctioneer constitutes a firm offer to
sell, as opposed to an invitation to make an offer. In an auction held &#147;without
reserve,&#148; the seller promises to sell to the highest bidder; and mutual
contingent assent is achieved when an offer is made, and each bid made is
mutual assent between the seller and the respective bidder, contingent only on
no higher bid being received; as each high bid is made, the previous contract
is extinguished and a new contract based on mutual contingent assent comes into
being, and at the point when no further bids are made, contingency in the last
bid made is extinguished and the final contract in series of contingent
contracts is established.&#160; <i>Pyles v. Goller,</i>
109 Md. App. 71 (1996), <i>cited in</i><i>  </i>7 AM. JUR. 2D <i>Auctions and
Auctioneers</i> &#167; 23 n.1 (2007).&#160;&#160;
At the time a contract is formed between a
buyer and seller pursuant to the principles set forth above, a contract between
the buyer and Copart is concurrently formed whereby the buyer agrees to pay
Copart its buyers fees pursuant to Section&nbsp;IV(A)&nbsp;of the Copart Auto
Auctions Buyer Terms and Conditions. In the event the buyer breaches his
contract with the seller to purchase the vehicle and pay his buyer&#146;s fees,
Copart will have a claim for breach of contract against the buyer, pursuant to Section&nbsp;IV(D)&nbsp;of
the Copart Auto Auctions Buyer Terms and Conditions.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>

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<p style="margin:0in 3.75pt .0001pt 1.05in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 3.75pt .0001pt 1.05in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Transfer of Risk - </font></b><font face="Times New Roman">When the
auctioneer &#147;knocks down the goods&#148; (e.g. the auction is concluded and high bid
is accepted), title and risk immediately pass to the buyer, even though the
seller refuses to permit the buyer to remove the goods until either the buyer
pays the amount of his bid or gives security satisfactory to the seller (</font><strong><b><i><font face="Times New Roman" style="font-style:italic;">Lott v. Delmar</font></i></b></strong>
<font face="Times New Roman">142
N.J. Eq. 298, 59 A.2d 832). </font><font face="Times New Roman">&#160;</font><strong><b><i><font face="Times New Roman" style="font-style:italic;font-weight:normal;">Lott v.
Delmar</font></i></b></strong><strong><b><font face="Times New Roman" style="font-weight:normal;">,</font></b></strong><b>  </b><font face="Times New Roman">142
N.J. Eq. 298, 59 A.2d 832 (1948). Finally, UCC&#160;
&#167; </font>2-509(b)(2)&nbsp;(2005)&#160; provides that where
the goods are held by a bailee to be delivered without being moved, the risk of
loss passes to the buyer on acknowledgment by the bailee of the buyer&#146;s
right to possession of the goods (as evidenced by the &#147;SOLD&#148; message flashed on
VB(2), and repeated through the email sent by VB(2)&nbsp;to the buyer after the
sale).</p>

<p style="margin:0in 3.75pt .0001pt 1.05in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in .05in .0001pt 1.05in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Responsibility as Bailee</font></b>
- - <strong><b><font face="Times New Roman" style="font-weight:normal;">The status of
auctioneers as bailee is commonly recognized by the Courts. This is true as it
applies to auctioneers acting as bailee for the seller.<i><font style="font-style:italic;"> See </font>Scholman v. Joplin Auto. Auction Co</i></font></b>.,</strong>
439 S.W.2d 215 (1969), finding that  where plaintiff delivered his automobile into defendant&#146;s
actual or constructive possession to be sold at auction and the automobile was parked on defendant&#146;s lot, the
transaction was bailment for sale. It is equally true as it applies to
auctioneers acting as bailee for the buyer. <i>See</i>  <strong><b><i><font face="Times New Roman" style="font-style:italic;font-weight:normal;">Shelby
Mut. Ins. Co. v. Pelic</font></i></b></strong><strong><b><font face="Times New Roman" style="font-weight:normal;">  </font></b></strong>1988 WL 112366 (1988), finding &#147;(t)he parties stipulated that the Buyer had given Auto Auction permission to deliver
the car. The record also contains evidence showing that appellee Seller had
given its permission to operate the vehicle. Thus, no matter which dealer owned
the car at the time of the accident, Auto Auction had possession as a bailee.&#148;&#160; <i>See also</i>  <strong><b><i><font face="Times New Roman" style="font-style:italic;font-weight:normal;">Big D
Auto Auction,&nbsp;Inc. v. Hightower</font></i></b></strong><strong><b><font face="Times New Roman" style="font-weight:normal;"> &#160;</font></b></strong>368 S.W.2d 881 (1963);<strong><b><font face="Times New Roman" style="font-weight:normal;">  <i>State v. Kuhn,</i></font></b></strong><b>  </b>178 Wis.2d
428, 504<b>  </b>N.W.2d 405 (1993); <strong><b><i><font face="Times New Roman" style="font-style:italic;font-weight:normal;">Tedder
v. Blackmon&#146;s Auctions,&nbsp;Inc.,</font></i></b></strong><b>  </b>274 Ark.
241, 623 S.W.2d 516 (1981);<b>  </b><strong><b><i><font face="Times New Roman" style="font-style:italic;font-weight:normal;">Zendman
v. Harry Winston,&nbsp;Inc.,</font></i></b></strong><b>  </b>279 A.D.
28, 107 N.Y.S.2d 618 (1951); and<b>&#160; </b><strong><b><i><font face="Times New Roman" style="font-style:italic;font-weight:normal;">Tasker
v. Ryan</font></i></b></strong><b>  </b>4 A.D. 616 (1896).</p>

<p style="margin:0in .05in .0001pt 1.05in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in .05in .0001pt 1.05in;"><strong><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">The Court in <i>Schmidgall
v. Jones Boatyard,&nbsp;Inc.</i></font></b></strong>  526 So.2d 1042  (1988),
citing 8 AM. JUR. 2D, <i>Bailments</i>
&#167; 96 (1980) observed &#147;the law of bailments seems
reasonably clear that [the] bailor may sell the subject matter of the bailment
and thereby confer on the purchaser an immediate and valid title. Thereupon,
the possession of the bailee becomes that of the purchaser, without any formal delivery
of the subject of the bailment to him, a mere notice to the bailee of the sale being
ordinarily sufficient.... After the bailee receives notice of the sale[,] the relation of bailor and bailee exists between
purchaser and bailee, their acts or conduct with reference to the subject matter
of the bailment are governed by the same rules&nbsp;of law as between the
original parties to the bailment, and the bailee is not thereafter liable as a bailee to the original bailor.&#146;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>

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