CAVEAT EMPTOR MEAN..
Caveat emptor is Latin for "Let the buyer beware." Generally,
caveat emptor is the property law doctrine that controls the sale of real
property after the date of closing. It is a principle in commerce where without
a warranty the buyer takes the risk. It acts as 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.
In other words, consumers need to know their rights and be vigilant in avoiding
scams. For example in the private purchase of a used car, caveat emptor places
an onus on the buyer to make sure the car is worth the purchase price. This is
because once the transaction is complete the buyer will not receive a warranty
or return option from the seller. Under the doctrine of caveat emptor, the
buyer could not recover from the seller for defects on the property that
rendered the property unfit for ordinary purposes. The only exception was if
the seller actively concealed latent defects or otherwise made material
misrepresentations amounting to fraud.
The modern trend in laws protecting consumers, 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 customer. A person purchasing
antiques from an antique dealer, or jewellery from a jeweller, is justified in
his or her reliance on the expertise of the seller. If both the buyer and the
seller are negotiating from equal bargaining positions, however, the doctrine
of caveat emptor would apply.
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