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American Heritage Dictionary:
caveat emp·tor |
[From Latin caveat ēmptor, let the buyer beware : caveat, third person sing. present subjunctive of cavēre, to beware + ēmptor, buyer.]
Barron's Insurance Dictionary:
Caveat Emptor |
| Cause of Loss Form, Catastrophic Insurance Futures and Options, Catastrophe Loss | |
| Cede, Ceding Company, Central Guarantee Fund |
Barron's Real Estate Dictionary:
caveat emptor |
| Cash-Out Refinance, Cash-On-Cash Return | |
| Caveat SubscriptOr or Caveat Venditor, Caveats |
West's Encyclopedia of American Law:
Caveat Emptor |
[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.
Dictionary of Cultural Literacy: Economics:
Caveat emptor |
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.”
Investopedia Financial Dictionary:
Caveat Emptor |
A Latin phrase for "let the buyer beware." The term is primarily used in real property transactions. Essentially it proclaims that the buyer must perform their due diligence when purchasing an item or service.
Investopedia Says:
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.
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Random House Word Menu:
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Rhymes:
caveat emptor |
Wikipedia on Answers.com:
Caveat emptor |
Caveat emptor (
/ˌkæviːɑːt ˈɛmptɔr/) is Latin for "Let the buyer beware".[1] Generally, caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.
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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.
Before statutory law, the buyer had no warranty of the quality of goods. In many jurisdictions now, the law requires that goods must be of "merchantable quality". However, this implied warranty can be difficult to enforce and may not apply to all products. Hence, buyers are still advised to be cautious.
The modern trend in the US, however, is one of the Implied Warranty of Fitness that applies only to the sale of new residential housing by a builder-seller and the caveat emptor rule applies to all other sale situations (i.e. homeowner to buyer).[2] Many other jurisdictions have provisions similar to this.
In addition to the quality of the merchandise, this phrase also applies to the return policy. In most jurisdictions, there is no legal requirement for the vendor to provide a refund or exchange. In many cases, the vendor will not provide a refund but will provide a credit. In the cases of software, movies and other copyrighted material, many vendors will only do a direct exchange for another copy of exactly the same title. Most stores require proof of purchase and impose time limits on exchanges or refunds. However, some larger chain stores will do exchanges or refunds at any time, with or without proof of purchase, although they usually require a form of picture ID and place quantity or dollar limitations on such returns.
Laidlaw v. Organ,[3] a decision written in 1817 by Chief Justice John Marshall, is believed by scholars to have been the first U.S. Supreme Court case which laid down the rule of caveat emptor in U.S. law.[4]
In the UK, consumer law has moved away from the caveat emptor model, with laws passed that have enhanced consumer rights and allow greater leeway to return goods that do not meet legal standards of acceptance.[5] Consumer purchases are regulated by The Sale of Goods Act.
In the UK, consumers have the right to a full refund for faulty goods, however by convention, most retail companies will allow customers to return goods within a specified period (typically a month or two) for a full refund or an exchange, even if there is no fault with the product. Exceptions may apply for goods sold as damaged or to clear.
Goods bought via 'distance selling', for example online or via phone, also have a statutory 'cooling off' period of seven working days. To cancel the contract is to treat the contract as if it had not been made, except that the Regulations refer to the terms.
Although no longer applied in consumer law, the principle of caveat emptor is generally held to apply to transactions between businesses unless it can be shown that the seller had a clear information advantage over the buyer that could not have been removed by carrying out reasonable due diligence.
Caveat venditor is Latin for "let the seller beware". It is a counter to caveat emptor and suggests that sellers can also be deceived in a market transaction. This forces the seller to take responsibility for the product and discourages sellers from selling products of unreasonable quality.
In the landmark case of MacPherson v. Buick Motor Co. (1916), New York Court Appeals Judge Benjamin N. Cardozo established that privity of duty is no longer required in regard to a lawsuit for product liability against the seller. This case is widely regarded as the origin of caveat venditor as it pertains to modern tort law in US.
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
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 | Fast Facts by Answers.com. © 1999-present by Answers Corporation. All rights reserved. Read more |
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| American Heritage Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved. Read more |
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| Barron's Insurance Dictionary. Dictionary of Insurance Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Barron's Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| West's Encyclopedia of American Law. West's Encyclopedia of American Law. Copyright © 1998 by The Gale Group, Inc. All rights reserved. Read more |
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| Dictionary of Cultural Literacy: Economics. The New Dictionary of Cultural Literacy, Third Edition Edited by E.D. Hirsch, Jr., Joseph F. Kett, and James Trefil. Copyright © 2002 by Houghton Mifflin Company. Published by Houghton Mifflin. All rights reserved. Read more |
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| Investopedia Financial Dictionary. Copyright ©2010, Investopedia.com - Owned and Operated by Investopedia US, A Division of ValueClick, Inc. All rights reserved. Read more |
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| Latin Phrase. © 1999-present by Answers Corporation. All rights reserved. Read more |
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| Random House Word Menu. © 2010 Write Brothers Inc. Word Menu is a registered trademark of the Estate of Stephen Glazier. Write Brothers Inc. All rights reserved. Read more |
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Rhymes. Oxford University Press. © 2006, 2007 All rights reserved. Read more | |
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| Wikipedia on Answers.com. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article Caveat emptor. Read more |
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