Legal Definitions - caveat emptor

Term: caveat emptor

Caveat emptor is a long-standing legal principle that places the responsibility on the buyer to inspect goods or property for defects before completing a purchase. Essentially, it means that a buyer must exercise reasonable diligence to examine an item. If a buyer fails to conduct such a reasonable inspection and later discovers a defect that would have been apparent or discoverable through that inspection, they generally cannot hold the seller accountable for that particular defect. While this principle remains influential in many transactions, it is not without limitations and exceptions, such as when a seller actively conceals a defect or makes false statements about the item.

• Example 1: Purchasing a Used Appliance
  Imagine a person buys a used refrigerator from a private seller through an online marketplace. They visit the seller's home, see the refrigerator plugged in, and note that it appears to be cooling. However, they do not open the freezer door to check for ice buildup or listen for unusual noises from the compressor. A week after purchasing and moving the refrigerator, they discover the freezer compartment is completely iced over, a condition that would have been visible had they opened the door during their inspection. Under caveat emptor, the buyer would likely be responsible for the repair or replacement, as the defect was discoverable through a reasonable examination they failed to perform.
• Example 2: Buying an Antique Collectible
  A collector attends an antique show and decides to purchase a vintage porcelain figurine. They admire its intricate details and overall appearance but do not turn it over to inspect the base or hidden areas. Upon returning home, they notice a significant chip on the underside of the base that was not visible from the top but would have been easily seen with a thorough inspection. In this scenario, caveat emptor would generally apply, meaning the buyer bears the responsibility for not discovering the visible defect during the purchase, as they had the opportunity to inspect the item thoroughly.
• Example 3: Acquiring a Commercial Property
  A small business owner decides to purchase an existing commercial building for their new office space. They walk through the property multiple times but choose not to hire a professional building inspector to conduct a detailed assessment of the roof, foundation, or electrical systems. Six months after the sale closes, a major electrical issue arises that a professional inspection would have identified as pre-existing and in need of immediate repair. Because the buyer had the opportunity and responsibility to conduct a thorough inspection (or hire an expert to do so) and chose not to, caveat emptor would likely prevent them from seeking recourse against the seller for this discoverable defect.