When a person or business is liable, it means they're obligated or responsible by law. In selling or privately reselling goods, the seller holds some responsibility for the item functioning properly after its sold. For example, if a person or business is selling a used vehicle and claims it’s never been in an accident, but it's later proven that it has, they could be obligated to take the vehicle back. The seller might even face other legal consequences because misrepresenting the vehicle's history could be considered fraudulent. That’s why most people protect themselves from liability by reselling items “as is.”