Grandfather clause

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Grandfather clause

A provision included in a new rule or regulation that exempts a business that is already conducting business in the area addressed by the regulation from penalty or restriction.

Grandfather Clause

A clause in a new law, regulation, or anything else that exempts certain persons or businesses from abiding by it. For example, suppose a country passes a law stating that it is illegal to own a cat. A grandfather clause would allow persons who already own cats to continue to keep them, but would prevent people who do not own cats from buying them. Grandfather clauses are controversial, but they are also relatively common.
References in periodicals archive ?
Representation became slightly less proportional than it was under the amalgam system, notably because the grandfather clause applied in relation to a lower total number of seats.
Third, no province can be allocated fewer seats than it had in 1986; this is the grandfather clause, which protects Newfoundland, Nova Scotia, Quebec, Manitoba and Saskatchewan, in addition to providing additional protection to the two provinces protected by the senatorial clause.
A grandfather clause stated that the rule applies only to income from tax-exempt bonds purchased after August 8, 1986.