arm's length

arm's length
arm's length n: the condition of the parties to a business deal in which each has independent interests and one does not dominate the other
— often used in the phrase at arm's length
a contract made at arm's length
arm's–length adj

Merriam-Webster’s Dictionary of Law. . 1996.

arm's length
The description of an agreement made by two parties freely and independently of each other, and without some special relationship, such as being a relative, having another deal on the side, or one party having complete control of the other. It is relevant for determining whether an agreement was freely entered into, and the price, terms, and other conditions were fair. For example, if a man sells property to his son the price paid may not be the true value since it may not have been an "arm's length" transaction.
Category: Business, LLCs & Corporations → Buying or Selling a Business
Category: Small Claims Court & Lawsuits

Nolo’s Plain-English Law Dictionary. . 2009.


arm's length
adj. Of or relating to the bargaining position or dealings of two or more unrelated parties of approximately equal bargaining power who are not connected, on close terms, or in a confidential relationship with each other and whose mutual dealings are influenced only by their own self-interest.

Webster's New World Law Dictionary. . 2000.

arm's length
adj.
   the description of an agreement made by two parties freely and independently of each other, and without some special relationship, such as being a relative, having another deal on the side or one party having complete control of the other. It becomes important to determine if an agreement was freely entered into to show that the price, requirements, and other conditions were fair and real. Example: if a man sells property to his son the value set may not be the true value since it may not have been an "arm's length" transaction.
   See also: contract

Law dictionary. . 2013.

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Look at other dictionaries:

  • Arm's length — Arm Arm, n. [AS. arm, earm; akin to OHG. aram, G., D., Dan., & Sw. arm, Icel. armr, Goth. arms, L. armus arm, shoulder, and prob. to Gr. ? joining, joint, shoulder, fr. the root ? to join, to fit together; cf. Slav. rame. ?. See {Art},… …   The Collaborative International Dictionary of English

  • arm's length — ˌarm s ˈlength adjective not having a close relationship with another company and not receiving any specially favourable terms from it: • It insists that it is an arm s length owner of the company, and does not interfere in its affairs …   Financial and business terms

  • arm's-length — UK US adjective ► used to describe a situation in which two people, companies, etc. operate separately from each other: »An arm s length relationship between buyers and suppliers is usually advisable …   Financial and business terms

  • arm's-length — arm s ,length adjective used for describing something such as a business deal in which the different sides avoid having a close relationship with each other: arm s length negotiations between management and employees …   Usage of the words and phrases in modern English

  • arm’s length — adj. Distant, not intimate; describes a good faith, fair market transaction by parties with relatively equal bargaining power, in which neither one forces the other to accept terms. The Essential Law Dictionary. Sphinx Publishing, An imprint of… …   Law dictionary

  • arm's length — The act of dealing with a person who is not a relative but an independent third party. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • Arm´s Length — Der Fremdvergleichsgrundsatz (engl. arm s length principle ) betrifft insbesondere Verrechnungspreise für Warenlieferungen, Miet und Pachtzinsen oder Finanztransaktionen (u.a. Cash Pooling ) im Rahmen des Leistungsaustauschs innerhalb von… …   Deutsch Wikipedia

  • arm's-length — /ahrmz lengkth , length /, adj. not closely or intimately connected or associated; distant; remote: an arm s length relationship. [1645 55] * * * arm’s length UK US adjective used for describing something such as a business deal in which the… …   Useful english dictionary

  • arm's length — noun a distance sufficient to exclude intimacy (Freq. 1) • Hypernyms: ↑distance, ↑length * * * noun : a distance preventing or excluding personal contact, familiarity, or intimacy pompous and ornate and keeps us stiffly at arm s length Virginia… …   Useful english dictionary

  • Arm's length — Arms Arms, n. pl. [OE. armes, F. arme, pl. armes, fr. L. arma, pl., arms, orig. fittings, akin to armus shoulder, and E. arm. See {Arm}, n.] 1. Instruments or weapons of offense or defense. [1913 Webster] He lays down his arms, but not his wiles …   The Collaborative International Dictionary of English

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