Question

Short Answer

During the term, we have discussed the terms laissez-faire and caveat emptor. What do these terms mean?

Answer 1

Laissez faire means not interfering. It is stated that the role of the government should be minimum to peace keeping, maintaining law & order, securing the nation and other essential services. The government should not participate in the private transactions though regulations etc.

The Doctrine of Caveat Emptor simply means Let the buyer beware. According to this it is the duty of buyer to be alert while buying the goods and he must perform due diligence regarding the quality of goods. He should check for those defects which are clearly visible. He should also check whether the goods suits his purpose and cannot held the seller liable at a later stage for quality unless covered under guarantee / warranty. The seller is under no obligation to tell every defects.