grandfather clause Definition | Business Dictionaries from AllBusiness.com
Facebook Twitter Google+ You Tube RSS Feed
data-override-format="true" data-page-url = "http://www.allbusiness.com">

Business Glossary

SEARCH THE BUSINESS GLOSSARY

Business Definition for: grandfather clause
grandfather clause

provision included in a new rule that exempts from the rule a person or business already engaged in the activity coming under regulation. For example, the Financial Accounting Standards Board might adopt a rule effective in 1998 relating, say, to depreciation that, under a grandfather clause, would exempt assets put in service before 1998.

grandfather clause

provision included in a new rule that exempts from the rule a person or business already engaged in the activity coming under regulation.

grandfather clause

when a law is changed or a new law is passed, those whose specific activity was legal under the previous law are often allowed to continue, by virtue of this provision.

Example: All real estate brokers are allowed to continue to practice as brokers after licensure requirements increase. The new law affects only new licensees ; old licensees are grandfathered.

Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

Newsletter

Weekly Roundup

Sign up for our weekly Experts roundup, delivered to your inbox each Saturday morning.

Most Recent From our Experts

AllBusiness Experts

AllBusiness Greatest Hits

;
Close

Real Business Owners, Real Business Advice!

Sign up for practical, real-world solutions from successful business owners delivered to your inbox each Saturday morning. FREE.