The General Rule in Sales Is Caveat Emptor

question 40

Multiple Choice

The general rule in sales is caveat emptor. Which of the following statements about that concept is TRUE?

• A) Caveat emptor is a Latin phrase that means that a person cannot sell more than he or she actually owns.
• B) The implied term regarding merchantability is an exception to the general rule of caveat emptor.
• C) Caveat emptor is a Latin phrase that means "let the seller beware."
• D) Caveat emptor is a Latin phrase that means that, after the codification of the Sale of Goods Act, judges should resolve disputes on the basis of the statute and not on the basis of old cases.
• E) Because of the concept of caveat emptor, the buyer normally must pay for goods as soon as they are delivered.

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Definitions:

Role Perceptions

Individuals' views and understandings of their responsibilities, duties, and behaviors expected in a particular social or work setting.

Motivation

The processes that account for an individual's intensity, direction, and persistence of effort towards attaining a goal.

Moral Intensity

The degree of pressure felt to make ethical or unethical decisions, influenced by the perceived magnitude of consequences and social consensus surrounding an action.

Utilitarianism

A moral philosophy that evaluates actions based on their outcomes, specifically aiming to maximize overall happiness and minimize suffering.