Legal Question in Construction Law in Michigan

Re: Arms Length Proposal/bid

"Arms length" means basically at or close to market rate, negotiated under cool, stranger-level circumstances.

A deal that was NOT at arms length, might be a special discount you give to your little brother's friend.

In other words, if you sell someone something at a discount, to keep from having some other legal consequences kick in, both sides can stipulate that the deal was conducted at arms length.