ARM LENGTH Meaning and
Definition
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Arm’s length, typically written as "arm length," refers to a phrase used to describe a specific distance, measurement, or relationship between parties that suggests impartiality, fairness, or lack of any close or personal connection. The term is most commonly used in legal, financial, business, and transactional contexts.
In legal scenarios, an "arm's length transaction" refers to a transaction or deal between two parties who are not related or have no personal relationship to each other, ensuring that the agreement is fair and unbiased. It implies that both parties negotiate and act independently, without any hidden motives or undue influences.
In financial and business contexts, the concept of arm's length is used to determine the fair market value of transactions, especially those involving related parties. In such cases, it is essential to establish that the transaction has taken place under normal market conditions, as if the parties involved were unrelated, without any preferential treatment or collusion.
The arm's length principle is also applied in international trade to determine fair taxation and transfer pricing rules. It ensures that companies do not manipulate prices and profits when engaging in cross-border transactions with affiliated companies, thus avoiding tax evasion and maintaining fairness in global economic systems.
Overall, the notion of arm's length signifies a relationship or distance between parties that guarantees fairness, impartiality, and transparency in a wide range of legal, financial, and business proceedings.
Common Misspellings for ARM LENGTH
- arm-length
- zrm length
- srm length
- wrm length
- qrm length
- aem length
- adm length
- afm length
- atm length
- a5m length
- a4m length
- arn length
- ark length
- arj length
- arm kength
- arm pength
- arm oength
- arm lwngth
- arm lsngth
- arm ldngth
Etymology of ARM LENGTH
The word "arm length" is a compound word consisting of the noun "arm" and the noun "length".
The word "arm" can be traced back to the Old English word "earm" and the Proto-Germanic word "armaz". These words are believed to have originated from the Proto-Indo-European root *h₂erHm-, meaning "shoulder".
The word "length" comes from the Old English word "lengthu" and the Proto-Germanic word "langithō". This word has its roots in the Proto-Indo-European root *dlongʰos, meaning "long".
Therefore, the etymology of the word "arm length" essentially combines the concept of "arm" and "length" to describe the distance or measurement of something equivalent to the length of an arm.
