Absorption Law and Legal Definition

Absorption refers to the act or process of including a thing into something else. Generally, the act of absorption is used in the application of rights guaranteed by the U.S. Constitution to actions by the states. Under International Law, the act of absorption is used in the context of merging one nation into another, whether voluntarily or by subjugation. Under Labor Law, the act of absorption is used in a post-merger collective bargaining agreement where a provision allows seniority for union members in the resulting entity. Under Commercial law, the act of absorption is used wherein a manufacturer pays the seller’s freight costs, in which the manufacturer accounts for before quoting the seller a price. It is also known as freight absorption.