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Understanding Allied Supplier [Transportation]: A Comprehensive Guide
Definition & Meaning
An allied supplier in the context of transportation refers to a company that provides passenger motor vehicle equipment and is either wholly owned by the vehicle manufacturer or is part of a joint venture where one member owns the supplier. A supplier is deemed wholly owned if a parent company owns both the manufacturer and the supplier, or if a group of related companies owns both, with no external interests involved.
Table of content
Legal Use & context
The term "allied supplier" is primarily used in the automotive industry, particularly in regulations concerning vehicle manufacturing and safety. It is relevant in legal contexts such as compliance with federal transportation regulations and the labeling of automobile parts. Users may encounter forms related to supplier agreements or compliance documents, which can be managed using US Legal Forms templates designed by attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A car manufacturer has a wholly owned subsidiary that produces tires specifically for its vehicles. This subsidiary qualifies as an allied supplier.
Example 2: In a joint venture between two automotive companies, one company owns a parts supplier that exclusively provides components for vehicles produced by the joint venture. This supplier is also considered an allied supplier.
Relevant laws & statutes
Allied suppliers are defined under 49 CFR 583.4, which outlines the requirements for automobile parts content labeling and supplier ownership.
Comparison with related terms
Term
Definition
Supplier
A company that provides goods or services but may not be wholly owned by the manufacturer.
Joint Venture
A business arrangement where two or more parties agree to pool resources for a specific goal, but ownership of suppliers can vary.
Common misunderstandings
What to do if this term applies to you
If you are involved in the automotive industry and need to determine if a supplier qualifies as an allied supplier, review the ownership structure carefully. Consider using US Legal Forms to access templates that can help you draft necessary agreements or compliance documents. If your situation is complex, consulting a legal professional may be beneficial.
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