arm's-length transaction

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Basis of determining fair market value (FMV), it is a dealing between independent, unrelated, and well informed parties looking out for their individual interests. Transactions involving family members, and parent companies and subsidiaries, are deemed arm-in-arm dealings. To qualify as an arm's length transaction, neither of the involved parties may have any interest in the transaction's consequences to the other party.

Use 'arm's-length transaction' in a Sentence

You should do an arm's-length transaction with anyone that you haven't done business with before so you can get a read on them.
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You need to be wary of anyone you are having an arm's-length transaction with and what their true motives are.
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Both companies engaged in an arm's-length transaction, when they traded their respective inventories of proprietary farm equipment to each other.
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