United States – understand-culture

caveat emptor

caveat: may he/she beware. emptor: buyer. caveat emptor is Latin for “Let the buyer beware”. Generally, caveat emptor is the contract law principle that controls the sale of real property after the date of closing, but may also apply to sales of other goods.

The phrase caveat emptor and its use as a disclaimer of warranties arises from the fact that buyers typically have less information than the seller about the good or service they are purchasing. This quality of the situation is known as information asymmetry. Defects in the good or service may be hidden from the buyer, and only known to the seller.

caveat emptor is a short form of Caveat emptor, quia ignorare non debuit quod jus alienum emit: “Let a purchaser beware, for he ought not to be ignorant of the nature of the property which he is buying from another party.”

A common way that information asymmetry between seller and buyer has been addressed is through a legally binding warranty, such as a guarantee of satisfaction.

A Latin term

Protections

“Today, caveat emptor does not apply to as many situations as it once did. Due to the changing marketplace, government regulations were created to protect consumers’ interests. With the release of the Uniform Commercial Code (UCC)—a set of business laws that regulate financial transactions that occur across states—for example, warranty provisions are much more common. Additionally, some industries now require seller disclosures.”

Buying a used Tesla

Here’s a good example of the need to do your homework, your due diligence, before making a major purchase.

When car salesmen lie

An older video, but very clever.

Robert De Niro sells cars

Vulgar, but humorous.

“We’re gonna keep going”

They simply could not overcome the critical questions.

YouTube comments:

“Best pitch ever indeed! Lesson to learn about how to hold your poise when the unexpected happens in perhaps the biggest moment of your life! Applaud Scott and his mate for doing an amazing job!”

“Let’s make kids safer in school.” … “No, the margins are awful.”

“They’re now worth over 8 million and still sell online :)”

Face Filters

Who wants to admit?

When persuading Americans do not feel obligated to offer full and comprehensive information about the weaknesses of their proposal, concept, product or solution.

Instead, the obligation is with the buyer (the audience) to expose the weaknesses through critical questions. If asked, competent, professional and honest Americans will respond forthrightly.

This is a shared logic among Americans. Listeners know to ask the critical questions. Speakers know to anticipate those questions. If the critical questions are not asked, if the listener then accepts (buys), only later to discover negative aspects, the listener (buyer) will not blame the speaker (seller), but himself.

Besides, who wants to admit to their colleagues or boss, to their spouse or friends, that they made a poor decision?

“Best pitch ever”

Shark Tank: Present the positives. Answer questions about the negatives.

As Wen Muenyi – born and raised in a small African village – of Jax Sheets pitches his men’s bedding company, the Sharks fall in love with his candor. When Kevin O’Leary questions whether the business is worth $2.1 million, Wen responds ‘I mean, I said it, but it might not be true!’ getting a big laugh from the Sharks, and Wen explains why he’s already living the American Dream.

Yes, candor can sell, too.