In a business transaction, where the price of the product being sold is based on its weight, the balance or scale used must be a 'Legal for Trade' version, sometimes otherwise known as an 'Approved' version. In such Legal for Trade weighing transactions, the weight must be accurately determined to ensure fairness to both buyer and seller.
Where the product being weighed is very valuable, as is the case in the jewelry and gemstone trades, a small measurement error could mean a considerable financial loss to one of the parties in the transaction. The buyer wants to be confident that he is getting the total amount of gold or gemstones that he has paid for; the seller wants to be sure that he is not making a loss on the sale. In addition, any jewelry wholesaler or retailer wants to uphold their reputation for being a trustworthy dealer. This can only happen if the Legal for Trade weighing process performed provides accurate results.
Legal requirements for weighing equipment vary from country to country and it is important that wholesalers and retailers ensure they meet the local requirements of the area in which they are trading.