- A legal relationship between companies in the chain of distribution of a product that creates certain responsibilities, including liability for defects in the product. For example, vertical privity exists between an automobile manufacturer and the dealership that sells an individual car made by the manufacturer in that both the dealer and the manufacturer are liable for defects in the cars sold. See privity.
Business law dictionary. 2015.
Look at other dictionaries:
vertical privity — n 1: privity between one who acquires property burdened with a restrictive covenant and those who executed the covenant require vertical privity for a restrictive covenant to run with the land 2: privity between parties (as a manufacturer and… … Law dictionary
privity — priv·i·ty / pri və tē/ n pl ties [Old French privité privacy, secret, from Medieval Latin privitat privitas, from Latin privus private] 1: the direct connection or relationship between parties to a contract or transaction (as a purchase) privity… … Law dictionary
privity — In its broadest sense, privity is defined as mutual or successive relationships to the same right of property, or such an identification of interest of one person with another as to represent the same legal right. Petersen v. Fee Intern., Ltd., D … Black's law dictionary
Privity of contract — Contract law Part o … Wikipedia
privity — A direct contractual relationship between parties, such as exists between a consumer and a retailer, but not between a consumer and a wholesaler or manufacturer, who are farther away in the distribution chain. Contract law requires that there… … Business law dictionary
Privity of estate — is the concept in property law that there is a legal relationship between a landlord and a tenant, with shared rights and responsibilities. this relationship does not arise out of contract but connected through possession of the property on the… … Wikipedia
Covenant running with the land — A covenant running with the land, is a real covenant, in the law of real property. It is a nonpossessory interest in land in one form as an agreement between adjoining landowners to do something (affirmative covenant) or to refrain from doing… … Wikipedia
Covenant (law) — Property law Part of … Wikipedia
Real Covenant — A real covenant is a term used in real property law to describe a promise concerning the use of land. Real covenants are classified as either affirmative, a promise to do something (e.g. build a fence) or negative, a promise to not do something… … Wikipedia
Resale price maintenance — (RPM) is the practice whereby a manufacturer and its distributors agree that the latter will sell the former s product at certain prices (resale price maintenance), at or above a price floor (minimum resale price maintenance) or at or below a… … Wikipedia