Caveat Emptor

THE TERM caveat emptor derives from the Latin, meaning “let the buyer beware.” It is employed as a warning to consumers that, if they are not vigilant, they are likely to be bilked by any one of thousands of ravenous marketplace predators; be they homerepair salesman, stock market shills, those who offer CDs at bargain rates, or others of the hordes of fraudulent vendors. The issue is whether governmental groups ought to provide protection for unwary consumers or whether they ought to be left to look out for themselves and suffer the consequences.

The popularity of the term caveat emptor is seen in the 28,000 entries that can be retrieved from Yahoo! on the internet. Virtually all of the internet links contain warnings about the perils of one or another scam that is being perpetrated on an unknowing public.

Because of its linguistic roots in Latin, caveat emptor often is mistakenly assumed to be a product of Roman law. Actually, it first was used in Angloamerican treatises in the 18th century with the introduction of industrialization and mercantilism. Walton Hamilton, a Yale University law professor, pointed out that the idea of caveat emptor was created by businessmen on the pretense that there existed a long tradition that required purchasers to be wary.

It was claimed that such an arrangement made for a more alert and more intelligent buying public. But Hamilton demonstrates that this viewpoint was based largely on misinterpretations of old documents. In truth, Hamilton suggests, Roman law and English common law were notably protective of the consumer.

Whatever slight legitimacy the caveat emptor principle might ever have enjoyed, it makes little sense in a very complex world in which it has become impossible for a customer to evaluate the adequacy of what is being offered. It may have been possible for farmers to appreciate that a horse said to be seven years old was twice that age. But how many of us can tell if pajamas are dangerously flammable or that a house being purchased has structural flaws not visible to the naked eye?

Because of the increased complexity of human existence, caveat emptor has been severely limited and increasing liability for misrepresentation has been placed on sellers. The legal responsibility of those purveying products has come to be labeled caveat venditor, let the seller beware.