Vertical Privity

Business, Legal & Accounting Glossary

Definition: Vertical Privity


Quick Summary of 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.



Cite Term


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https://payrollheaven.com/define/vertical-privity/
Modern Language Association (MLA):
Vertical Privity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. October 26, 2020 https://payrollheaven.com/define/vertical-privity/.
Chicago Manual of Style (CMS):
Vertical Privity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/vertical-privity/ (accessed: October 26, 2020).
American Psychological Association (APA):
Vertical Privity. PayrollHeaven.com. Retrieved October 26, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/vertical-privity/

Definition Sources


Definitions for Vertical Privity are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd April, 2020 | 0 Views.