Caveat Subscriptor

AAA

DEFINITION of 'Caveat Subscriptor'

A latin term that means "let the seller beware." Caveat subscriptor means that any defect or shortcoming in a good or service that is sold to a willing buyer is the responsibility of the seller. Caveat subscriptor is generally applicable in highly-regulated markets and markets where competition is high.

INVESTOPEDIA EXPLAINS 'Caveat Subscriptor'

For example, Frank sells a car to Jim with the promise that the car is in good condition and is running smoothly. The car doesn't start when Jim tries to drive it away after paying Frank for the car. Frank is responsible for repairing the car under the caveat subscriptor doctrine.

RELATED TERMS
  1. Caveat

    A Latin term that means "let him beware." Caveats have many applications ...
  2. Caveat Emptor

    A Latin phrase for "let the buyer beware." The term is primarily ...
  3. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
  4. Liability

    A company's legal debts or obligations that arise during the ...
  5. Limited Liability

    A type of liability that does not exceed the amount invested ...
  6. Ex Gratia Payment

    A payment made to an individual by an organization, government, ...
RELATED FAQS
  1. How can I calculate funds from operation in Excel?

    In general, the terms "work in progress" and "work in process" are used interchangeably to refer to products midway through ... Read Full Answer >>
  2. When does Q4 start and finish?

    Most companies such as Facebook have financial years that end on December 31st. For these companies, the fourth quarter begins ... Read Full Answer >>
  3. When is it useful to look at a company's fixed asset turnover ratio?

    It is useful to look at a company's fixed asset turnover ratio when an outside observer, such as an investor, wants to know ... Read Full Answer >>
  4. What is the difference between perfect and imperfect competition?

    Perfect competition is a microeconomics concept that describes a market structure controlled entirely by market forces. In ... Read Full Answer >>
  5. How difficult is it to understand business analytics?

    In the abstract, business analytics is the study of financial, economic, consumer and production data through statistical ... Read Full Answer >>
  6. At what levels are core competencies required for businesses operating in the primary ...

    Core competencies help businesses understand their best abilities to perform in the market. Primary sector businesses mine ... Read Full Answer >>
Related Articles
  1. Economics

    What Does Business-to-Business Mean?

    The term business-to-business refers to transactions or communication that takes place between two or more businesses.
  2. Economics

    What are Barriers to Entry?

    A barrier to entry is any obstacle that restricts or impedes a company’s efforts to enter an industry.
  3. Economics

    Understanding Management by Objectives

    Management by objectives is a process in which a manager and an employee agree on specific performance goals and then develop a plan to reach those goals.
  4. Economics

    What Does Going Concern Mean?

    Going concern is a concept used in business and accounting to describe the fiscal health of a company.
  5. Fundamental Analysis

    Calculating the Capacity Utilization Rate

    Capacity utilization rate is a ratio used to compare a current usage level against a maximum potential level.
  6. Economics

    Explaining the Supply Chain

    A supply chain is the cumulative network involved in moving raw materials, components and finished products from original suppliers to end users.
  7. Credit & Loans

    Should You Use Credit Cards To Fund Your Business?

    We give you 4 reasons to consider using a credit card instead of a business loan to fund your business, and how to be smart about it.
  8. Economics

    What is Normal Profit?

    Normal profit is an economic term that means zero economic profit.
  9. Economics

    Understanding Organizational Behavior

    Organizational behavior is the study of how humans interact in group environments.
  10. Economics

    Understanding Implicit Costs

    An implicit cost is any cost associated with not taking a certain action.

You May Also Like

Hot Definitions
  1. Topless Meeting

    A meeting in which participants are not allowed to use laptops. A topless meeting organizer can also ban the use of smartphones, ...
  2. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  3. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  4. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  5. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  6. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!