Caveat emptor as 'information asymmetry'. Defects in the good or service may be hidden from the buyer, and only known to the seller. 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. But without such a safeguard in place the ancient rule applies, and the buyer should beware. Under the principle of "caveat emptor", the buyer could not recover damages from the seller for defects on the property that rendered the property unfit for ordinary purposes. The only exception was if the seller actively concealed latent
Caveat (horse) Maple aboard. At age three, Caveat won the Prince John Stakes and came in second in the Arkansas Derby three weeks prior to the Derby. Woody Stephens felt like he needed a little tightening up, so he ran Caveat six days before the Derby and won the Derby Trial. Then in May, he placed third in the Kentucky Derby behind Sunny's Halo. Five weeks later, under jockey Laffit Pincay, Jr., he won the Belmont Stakes against a record field of 15 horses, straining a ligament in his right foreleg at the top of the stretch in the process. The injury