Mercantile Law - Caveat emptor, definition, exceptions and original case on it

1. 

2.  Cavaet Emptor is the latin for ‘let the buyer beware’.
 It is the basic premise that the buyer buy at his/her
own risk and therefore should examine and test a
product himself/herself for obvious defects and
imperfections.
 Cavaet Emptor still applies even if purchase is “as is” or
when a defect is obvious upon reasonable inspection
before purchase.
 Recently, consumer protection laws have stated that
the seller is to held a higher standard of disclosure
when the defects of a product cannot be identified
through casual inspection.

3.  Purchase By Description: The rule of caveat emptor does
not apply in a case where goods are brought by description
from a seller
 Purchase by samples and Description:
Where goods are bought by samples as well as by
description and the bulk of goods do not correspond with
the description, the buyer is entitled to reject the goods.
 Fitness for purpose:
Where the buyer informs the seller the particular purpose
for which the goods are required and relies upon seller’s
skill or judgement.

4.  Trade Name:
In case of a contract for a specified article under it’s patent or
other trade name, there is no implied condition as to it’s fitness
for any particular purpose.
 Merchantable Quality
Where the goods are brought by description from a seller who
deals in goods of that description. Whether he is a manufacturer
or producer or not, there is an implied condition that the goods
should be of merchantable quality.
 Usage of Trade
Where the usage or trade annexes an implied condition or
warranty as to quality or fitness for a particular purpose and
seller deviates from that, then this rule of Caveat Emptor does
not apply.

5.  Sale By Sample
In a sale of goods by sample. The rule of caveat emptor
does not apply if the bulk does not correspond with
the sample, or if the buyer is not given an opportunity
to compare bulk with the sample.
 Consent By Fraud
Where the seller makes a false statement intentionally
to the buyer and the buyer relies on it or where the
seller knowingly conceals the defects in the good, the
doctrine of Caveat Emptor does not apply.

6.  In 1980, a doctor killed a 13- year old girl and buried
her in the garden at the backyard of the house. But
later he dismembered the body and hid the small
pieces in different parts of the house.
 The house was then sold to a couple, who only found
the body parts after 10 years in 1990. They were
completely unaware of it until then.
 The initial reaction was to sell the house and they
didn’t tell it to the purchasers.
 All would have gone well if it wasn’t for a documentary
on the television based on the murder.

7.  The purchasers demanded their money back, and
appealed to the court for money.
 But as Caveat emptor took the role as a villain, the
purchasers never got their money back. They had to
leave the house.