Question

    Under the Sale of Goods Act, the principle of "Caveat

    Emptor" (buyer beware) means:
    A The buyer is automatically indemnified against all latent defects in the goods Correct Answer Incorrect Answer
    B The seller is under a legal obligation to disclose every minor flaw in the product Correct Answer Incorrect Answer
    C The buyer assumes the risk regarding the quality and fitness of the goods purchased Correct Answer Incorrect Answer
    D The seller is strictly liable for any defect regardless of whether the buyer inspected the goods Correct Answer Incorrect Answer
    E Goods can only be sold if they carry a comprehensive manufacturer’s warranty Correct Answer Incorrect Answer

    Solution

    Caveat emptor is the foundational principle of the Sale of Goods Act that the buyer buys at their own risk regarding quality, fitness, and defects unless: (1) An express warranty/condition is given, (2) An implied warranty exists (e.g., merchantability, fitness for purpose under Sections 16, 17), or (3) Statutory protections apply. This principle has been modified by consumer protection and quality standards laws.

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