Literature review

Singh, S. K. (2007). The concept of Caveat Emptor and Caveat Venditor still govern the
International commercial transaction in 21st centuries. International Jounal of Trend in
Scientific Research and Development (IJTSRD), 2(5), 957-961.

Caveat emptor, it is a Latin word which means “let the purchaser be careful”, in the law of
business exchanges, rule that the purchaser buys at his own particular hazard without any express
guarantee in the agreement. The assumption is that buyers will inspect and otherwise ensure that
they are confident with the integrity of the product (or land, to which it often refers) before
completing a transaction. This does not, however, give sellers the green light to actively engage
in fraudulent transactions. In a day-to-day transaction it is the duty of every buyer to be careful
while buying good of his or her requirements and also the seller is under the obligation to allow
the buyer to allow to examine goods prior to entering into a contract. It is not mandatory for the
seller to disclose every defect of his or her goods in absence of any inquiry or asking by the
buyer. The buyer should examine the goods thoroughly for his expected purpose and while doing
so if he or she makes a mistake and chooses defective goods or if the goods are not suitable for
his or her purpose, he or she cannot accuse the seller or cannot shift his or her own fault on the
shoulder of seller. Such obligation and judgement of the buyer is known as “caveat emptor”.
This paper also informs us about that the vendor is under no duty to communicate the existence
even of latent defects in his/her wares unless by act or implication he/she represents such defects
not to exist. The bounden duty of the purchaser is not making all such necessary inquiries and to
ascertain all the facts relating to property to be prior to committing in any manner.

Pedersen, Esben & Neergaard, Peter. (2006). Caveat Emptor – Let the Buyer Beware!
Environmental Labelling and the Limitations of ‘Green’ Consumerism. Business Strategy
and the Environment. 15. 15 - 29. 10.1002/bse.434.

The phrase, “Caveat Emptor”, and it use as a disclaimer of warranties arise from the fact that
those buyers typically have less information about the good or service they are purchasing.
While the sellers have more information. The quality of this situation is known as ‘Information
asymmetry’. Defects in the good or service may be hidden from the buyer, and only known to
the seller. The subject of consumer protection has gained a very vital concern and importance in
the present day economic and social scenario. This is a subject of concern for every citizen of a
country. In fact, each citizen is consumer in one form or the other. The Consumers are in truth
the pillars of every economy as they alone form the roots of trade, commerce and industry.
however, effective and qualitive a product may be, without the consumer the industry has to go
into bankruptcy which consequently results into social and economic disaster. Social and
economic disaster ultimately result in ‘anarchy’. Thus, ‘Consumer’ is the foundation for an
economy. Many constitutions including our Indian constitution have enumerated fundamental
rights for the citizens. But these rights could not help a consumer to safeguard himself from
unscrupulous traders and manufactures. he is subject to many ordeals like high pricing, low
quality, wrong quantity, adulteration, cheating etc. this oppression against consumer led to the
mergence consumer movement. A wave of awakening and an upsurge of enthusiasm for the
rights of consumers was witnessed in the last decades. Today, consumer organization are looking
to consumer problems as problems concerning social justice, as problems concerning human
rights, as problems concerning survival.