CAVEAT EMPTOR
[Latin, Let the buyer beware.] A warning that notifies a buyer that the goods he or she is buying are “as is”, or subject to all defects.
When a sale is subject to this warning the purchaser assumes the risk that the product
might be either defective or unsuitable to his or her needs.
This rule is not designed to shield sellers who
engage in FRAUD or bad faith dealing by making
false or misleading representations about the
quality or condition of a particular product. It
merely summarizes the concept that a purchaser
must examine, judge, and test a product consid-
ered for purchase himself or herself.
The modern trend in laws protecting con-
sumers, however, has minimized the importance
of this rule. Although the buyer is still required
to make a reasonable inspection of goods upon
purchase, increased responsibilities have been
placed upon the seller, and the doctrine of caveat
venditor (Latin for “let the seller beware”) has
become more prevalent. Generally, there is a
legal presumption that a seller makes certain
warranties unless the buyer and the seller agree
otherwise. One such WARRANTY is the IMPLIED
WARRANTY of merchantability. If a person buys
soap, for example, there is an implied warranty
that it will clean; if a person buys skis, there is an
implied warranty that they will be safe to use on
the slopes.
A seller who is in the business of regularly
selling a particular type of goods has still greater
responsibilities in dealing with an average cus-
tomer. A person purchasing antiques from an
antique dealer, or jewelry from a jeweler, is justi-
fied in his or her reliance on the expertise of the
seller.
If both the buyer and the seller are negotiat-
ing from equal bargaining positions, however,
the doctrine of caveat emptor would apply.
CROSS-REFERENCES
Consumer Protection; Sales Law.
