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February 13, 2012
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Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
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Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
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Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
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Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
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Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
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Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
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January 13, 2012
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January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
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Katy Hopkins : Consider This Before You Pay for an Online Degree
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January 11, 2012
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Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
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January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
June 29, 2009
/ 7 Tamuz 5769
Beware of Caveat Emptor
By
Rabbi Dr. Asher Meir
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http://www.JewishWorldReview.com |
Q. Recently you wrote that sellers need to shun misleading practices. Can't we rely on the consumer to defend his own interests?
A. In traditional common law, the basic rule in commerce was "caveat emptor," a Latin term meaning "Let the buyer beware". Since it was the responsibility of the buyer to wary of any problems with the purchase, he had a claim against the seller only if there was actual fraud. Merely finding an unusual defect was not grounds for cancellation.
There were some valid justifications for the caveat emptor rule. One was that only the customer can know what his needs are, and if the product meets them. Another is the desire to have clear and unambiguous laws of transfer to keep the courts from being clogged with endless litigation.
However, this rule created more problems than it solved, and today it has been abandoned in the developed world in favor of an implied warranty of merchantability.
It is true that only the consumer can be totally sure why he wants a product, but it is equally true that when people buy standard products the vast majority have exactly the same expectations, so it is reasonable to demand that the seller fulfill them. And even though only the consumer knows what he wants, typically only the seller is well-versed in the finer aspects of the product, especially if it is one sold seldom. An appliance dealer sells more refrigerators in one day than a typical person buys in a lifetime, so it is in everybody's interest to have the seller share his knowledge with the buyer, especially relating to any defects in the product.
It is noteworthy that Jewish law deals with misleading practices on two distinct levels. On one level, we have the ability to nullify a sale when the merchandise has substantive defects, to the extent that there is no true meeting of the minds. This corresponds to what in secular law is known as the implied warrantee of merchantability.
But there is another level of prohibition which is not actionable, but is still forbidden. This is called geneivas da'st, or "stealing judgment." In these cases the substantive information about the product and price are known, but significant context is missing. One case would be where the item is advertised as being "50% off" whereas in fact the discount is from a temporary markup. The customer is properly informed of the item and the price, but he is misled into thinking it is a bargain. This would also apply to meaningful but non-critical aspects of the product. An example would be selling a product as "natural" to a person who doesn't insist on natural products but views it as a sign of quality.
This highlights the fact that Jewish law is not merely a system of litigation or conflict resolution but also a system of ethical and religious norms. The customer doesn't have recourse but the misleading practice is still forbidden. The name of this prohibition is also instructive. The premise of your question is that we can rely on the judgment of the customer, but in fact sellers have many clever techniques of "stealing" that judgment, of inducing the customer to suspend his critical faculties. Jewish law has always affirmed, and current practice confirms, that we need to beware of "buyer beware."
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JWR contributor Rabbi Dr. Asher Meir, formerly of the Council of Economic Advisers in the Reagan
administration, is Research Director of the Business Ethics Center of Jerusalem, Jerusalem College of Technology.
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