Caveat Emptor – meaning

Caveat Emptor is a Latin term that means “let the buyer beware.” Similar to the phrase “sold as is,” this term means that the Buyer assumes the risk that a product (or land) may fail to meet the Buyer’s expectations or have defects. In other words, the principle of caveat emptor serves as a warning that Buyers have no recourse with the Seller if the product does not meet their expectations.

The term is actually part of a longer statement: Caveat emptor, quia ignorare non debuit quod jus alienum emit (“Let a purchaser beware, for he ought not to be ignorant of the nature of the property which he is buying from another party.”) The assumption is that Buyers will inspect and otherwise ensure that they are confident with the integrity (and zoning for nearby properties) of the product (or land, to which it often refers) before completing a transaction.

Caveat Emptor in Practice
Under the principle of caveat emptor, for example, a consumer who purchases a coffee mug and later discovers that it has a leak is stuck with the defective product. Had they inspected the mug prior to the sale, they may have changed their mind.

A more common example is a used car transaction between two private parties (as opposed to a dealership, in which the sale is subject to an implied warranty). The Buyer must take on the responsibility of thoroughly researching and inspecting the car—perhaps taking it to a mechanic for a closer look—before finalizing the sale. If something comes up after the sale, maybe a transmission failure, it is not the Seller’s responsibility. Garage sales offer another example of caveat emptor, in which all sales are final and nothing is guaranteed.