vertical privity
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 retailer) who occupy adjoining levels in a system of product distribution

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

vertical privity
A legal relationship in corporate law that exists between companies in the chain of distribution of a product. This relationship creates responsibilities between the companies involved, including being liable for defects in the product. For example, vertical privity exists between the manufacturer of a car and the dealership that sells it. Therefore, both the dealer and the manufacturer are liable for defects in cars sold by the dealership.
Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.
Category: If, When & Where to File a Lawsuit
Category: Mediation, Arbitration & Collaborative Law
Category: Small Claims Court & Lawsuits
Category: Working With a Lawyer

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

Look at other dictionaries:

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