TallBoy Inc.is a local furniture manufacturer and Leley Company is a retail furniture store.The two companies have no owners in common.Leley recently negotiated to purchase $845,000 of furniture from TallBoy.This purchase is an example of a/an:

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An arm's length transaction is a deal made by two parties freely and independently of each other, without any special relationship, ensuring that both parties act in their own self-interest. Since TallBoy Inc. and Leley Company have no owners in common, their transaction is considered arm's length.