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.
Adverse changes in the tax treatment of particular securities are often accompanied by grandfather clauses that shield existing holders from the changes.
In addition to coordinating freedom marches and protests during the 1960s' civil rights movement, the NAACP won historic legal victories for equal opportunity: its first, outlawing "grandfather clauses" that restricted voting rights in 1915; its most significant victory, in the 1954 decision in Brown v.