'Caveat Emptor' ‘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 fails to meet expectations or have defects. In other words, the principle of caveat emptor serves as a warning to the buyers that they have no recourse with the seller if the product does not meet their expectations. The term actually means that ‘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 of the product before completing a transaction.
This does not, however, give sellers the green light to actively engage in fraudulent transactions.