HopefullyInLawSchool
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Simple English definitions for legal terms
harbor, safe
Read a random definition: earned surplus
A quick definition of harbor, safe:
A safe harbor is a place or rule that provides protection from harm or punishment. For example, if you make a prediction about your business that turns out to be wrong, but you made it in good faith, there may be a safe harbor that protects you from being held responsible for the mistake.
A more thorough explanation:
A harbor is a place where ships can dock safely. Safe harbor means a place or provision that provides protection from harm or penalty.
- A ship seeking refuge from a storm can find a safe harbor in a protected bay.
- A company can use a safe harbor provision in a law to avoid being penalized for a certain action.
- The SEC regulations provide a safe harbor for companies making business forecasts in good faith.
The examples illustrate that a harbor is a safe place for ships to dock and a safe harbor provision in a law can protect a company from being penalized for certain actions. The SEC regulations provide a safe harbor for companies making business forecasts in good faith, which means that if the forecasts turn out to be incorrect, the company will not be penalized as long as they made the forecasts in good faith.