caveat emptor

n.
The axiom or principle in commerce that the buyer alone is responsible for assessing the quality of a purchase before buying.

[From Latin caveat ēmptor, let the buyer beware : caveat, third person sing. present subjunctive of cavēre, to beware + ēmptor, buyer.]

Another way to say, "let the buyer beware."

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In other words, consumers need to know their rights and be vigilant in avoiding scams.

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buyer beware, seller beware. A variation on the latter is caveat venditor. Good advice when markets are not adequately protected, which was true of the stock market before the watchdog Securities and Exchange Commission was established in the 1930s.

Latin expression meaning "let the buyer beware." The purchaser buys a product or service at his or her own risk. This principle has been modified significantly as it relates to an Insurance Policy. See also Adhesion Insurance Contract; Free Examination "free Look" Period.

"let the buyer beware." The buyer must examine the goods or property and buy at his own risk, except for Latent Defects.
Example: Often a property is offered As Is with no expressed or implied guarantee of quality or condition. When entering such transactions, caveat emptor is a worthy admonishment.

This entry contains information applicable to United States law only.

[Latin, Let the buyer be- ware.] 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 considered for purchase himself or herself.

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 jewelry from a jeweler, 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.

See: consumer protection.

(kav-ee-aht, kah-vee-aht emp-tawr)

Latin for “Let the buyer beware.” It means that a customer should be cautious and alert to the possibility of being cheated: “Caveat emptor is the first rule of buying a used car.”

Let the buyer beware

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