Arm's-length basis? What does it mean?

Arms Length Basis

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Arm's-length basis? What does it mean?
I'm reading this book that talks about contract, and it keeps on using this term, arm's-length basis. What does it mean?

http://en.wikipedia.org/wiki/Arm%27s_length_principle

The arm's length principle (ALP) is the condition or the fact that the parties to a transaction are independent and on an equal footing. Such a transaction is known as an "arm's-length transaction". It is used specifically in contract law to arrange an equitable agreement that will stand up to legal scrutiny, even though the parties may have shared interests (e.g., employer-employee) or are too closely related to be seen as completely independent (e.g., the parties have familial ties).

^^^ In case you didn't understand what that means, it's saying that if your mother sells her house to you, she has to charge you fair market value, to keep it on an arms-length basis.