CAVEAT EMPTOR

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. defects.  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 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 If both the buyer and the seller are negotiating from equal bargaining positions, however, the doctrine of caveat emptor would apply

LIMITS OF CAVEAT EMPTOR 

The notion of caveat emptor was gradually eroded in most of the developed countries by
² Changing social expectations ² The introduction of consumer protection laws

Consequently, protection of various consumer rights are now introduced in UN guidelines as well as in EU regulations and national laws  Most important questions arise in the context of the more ill-defined or questionable rights of consumers, illand those that are not legally protected 

Consumers have a right to truthful information about products  However, certain claims made by manufacturers and advertisers might not factually be untrue, but may end up misleading consumers about potential benefits  Eg. In many European countries, claim that a food product is ¶low fat· is permissible, provided 

² the product is lower in fat than an alternative, such as ² a competing product or ² another of the company·s product line 

This means even a product with 80% fat can be labelled ¶low fat· provided the company also markets an alternative with 85% fat

question is whether consumer purchasing such a product has been treated fairly by the seller  It is such grey area of consumers· rights that questionable market practices arise  It is also important to note that the stake consumers hold in corporations does not only provide them with certain rights, but also entrusts them with certain responsibilities 
The

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