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Simple English definitions for legal terms

arm's length

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A quick definition of arm's length:

Arm's length: When two or more people or companies do business, they should act fairly and independently, without any special relationship or advantage. This is called an "arm's length" transaction. It's like playing a game with someone who is not your friend or family member, where both players have the same chance to win and follow the rules. This is important because it helps make sure that everyone is treated fairly and that taxes are paid correctly.

A more thorough explanation:

Definition: “Arm’s length” is a term used to describe business transactions between two or more parties who are not related or affiliated with each other. In these transactions, the parties act independently and in their own self-interest, with equal bargaining power and symmetric information. The terms of the transaction are agreed upon based on fair market conditions.

For example, if a company wants to buy a product from another company, and both companies are not related or affiliated, they can negotiate the terms of the transaction at arm's length. This means that they will agree on a fair price for the product based on market conditions, without any undue influence or pressure from either party.

However, if a company wants to buy a product from its subsidiary, which is a related party, the transaction may not be considered arm's length. This is because the parent company may have more bargaining power and information than the subsidiary, and may not negotiate the terms of the transaction based on fair market conditions.

The concept of arm's length is important because it ensures that business transactions are conducted fairly and transparently, without any conflicts of interest. It also has legal and tax implications, as many countries require companies to engage in business transactions with related parties at arm's length to ensure that taxes are correctly allocated.

ARM | Armed Career Criminal Act (1984)

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Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
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bodyadaya
13:53
let it rock
14:17
How are the vibes heading into thanksgiving yall?
HopefullyInLawSchool
14:17
@Law-Guy Im feeling kinda happy I applied YM to UCI hoping it helps (:
Wanna give some head
soap
14:18
Cornell
14:19
@HopefullyinLawSchool What's YM?
14:19
oh no
HopefullyInLawSchool
14:19
you mom
WorthlessAttractiveZombie
14:19
Ouch
HopefullyInLawSchool
14:19
your*
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I fear I realized too late
babycat
14:20
another victim claimed
concorde
14:22
pwned
14:22
Might have to send in addendums for that
Dkk
14:26
No wave, so sad.
WorthlessAttractiveZombie
14:28
What are the odds that berk releases later today?
babycat
14:28
@Dkk: And here I thought you were a prophet. Smh.
14:33
@WorthlessAttractiveZombie: 4
WorthlessAttractiveZombie
14:35
@EvolBunny: I will take the odds of 4, very promising
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