Definition of Straw buyer:
A person who pretends to be legitimate buyer but is actually purchasing on behalf of another person. Often, the real buyer is unable to make the purchase for himself because of poor credit rating so he approaches the straw buyer to purchase the goods for him and compensates him for the use of his good credit standing.
A straw buyer, or straw purchaser, is a person who purchases on behalf of another person. A straw buyer is used when the real buyer cannot complete the transaction for some reason. However, the act of using a straw purchaser is considered illegal where the transaction involves fraud or purchasing goods for someone who is legally barred from making the purchase themselves.
A person who buys something on behalf of another person in order to circumvent legal restrictions or enable fraud.
Straw buying is sometimes used in large purchases such as buying homes and automobiles where the real buyer has poor credit and is unable to obtain financing. The real buyer promises to make all the payments and may compensate the straw buyer for the use of their credit. .
How to use Straw buyer in a sentence?
- The act is only considered illegal if the transaction is fraudulent or the goods are purchased for someone who is legally barred from making the purchase themselves.
- Straw buying is sometimes used to buy homes and automobiles when the real buyer is unable to obtain financing.
- Straw buyers purchased weapons and passed them on to cartels and criminals.
- A straw buyer is a person who makes a purchase on behalf of another person.
Meaning of Straw buyer & Straw buyer Definition