http://image.slidesharecdn.com/chapter15section1gildedage-140908150751-phpapp01/95/chapter-15-section-1-gilded-age-6-638.jpg
― sarahell, Thursday, 23 July 2015 23:05 (nine years ago)
What is an arms-length transaction?A transaction between a buyer and seller where both are acting in their own best interests to get the best price. Presumably, the seller wants the highest price possible, and likewise the buyer wants to pay the least possible.
― sarahell, Thursday, 23 July 2015 23:08 (nine years ago)
this is unlike other transactions where the buyer and/or seller don't care about getting the best price?
― Mordy, Thursday, 23 July 2015 23:10 (nine years ago)
if the buyer and the seller are related and/or the same people, then it's not an arms length transaction
― sarahell, Thursday, 23 July 2015 23:14 (nine years ago)
got it
― Mordy, Thursday, 23 July 2015 23:16 (nine years ago)
in the case of the Credit Mobilier scandal -- they were the construction company for the Union Pacific railroad, but the ownership was the same as the UP, and they inflated costs and invoiced the UP, who then passed on the overcharges to the US Government
― sarahell, Thursday, 23 July 2015 23:19 (nine years ago)
what was the deal w/ the UP and the government tho? even if they overpriced the CM labor wouldn't that just make their bid for the govt contract less competitive? like presumably you should be able to charge the govt whatever you want. or was the problem that UP as a utility had a functional monopoly and so they were held to higher standards of discretion than yr average contractor?
― Mordy, Thursday, 23 July 2015 23:24 (nine years ago)
like i've worked on a couple govt contracts before and i don't remember seeing any guidelines in terms of how to figure your charge to the govt based on some % of the subcontractor costs or whatever
― Mordy, Thursday, 23 July 2015 23:26 (nine years ago)
they had a functional monopoly
― sarahell, Thursday, 23 July 2015 23:31 (nine years ago)
bastards
― Mordy, Thursday, 23 July 2015 23:32 (nine years ago)
they also bribed congressmen and engaged in a form of insider trading in terms of land and stock speculation based on where they announced the railroad route would go. Comparatively, the Central Pacific was primarily financed by a handful of independently rich dudes who did not do these things.
― sarahell, Thursday, 23 July 2015 23:34 (nine years ago)
there are a lot of ppl w sleazy business practices out there
― Mordy, Thursday, 23 July 2015 23:39 (nine years ago)
the current regulations about what constitutes "related parties" are interesting to think about in a historical context
― sarahell, Thursday, 23 July 2015 23:41 (nine years ago)
like, if you were to sell a house at a discount to someone who is a fellow Jew, that wouldn't violate those laws
― sarahell, Thursday, 23 July 2015 23:43 (nine years ago)
something that has never happened lol
― Mordy, Thursday, 23 July 2015 23:55 (nine years ago)
Well sometimes in planned or struggling communities
https://pbs.twimg.com/media/COYajzyWsAATj4x.jpg
― noɪˈɣiːələx (nakhchivan), Monday, 5 October 2015 01:03 (nine years ago)
https://www.youtube.com/watch?v=JY2rLfhJLmY
― noɪˈɣiːələx (nakhchivan), Monday, 5 October 2015 01:19 (nine years ago)
Not by me it isn't!
― sarahell, Wednesday, 7 October 2015 11:21 (nine years ago)
hehehehe?
― noɪˈɣiːələx (nakhchivan), Wednesday, 7 October 2015 11:29 (nine years ago)
hehehehe !
― sarahell, Wednesday, 7 October 2015 11:34 (nine years ago)
¡jejejejejejeje!
― noɪˈɣiːələx (nakhchivan), Wednesday, 7 October 2015 11:41 (nine years ago)
The excess of it all is the whole point!
― sarahell, Wednesday, 7 October 2015 11:42 (nine years ago)