CAIB 3 Practice Exam 2026 Questions and
Answers – A+ Graded with Expert Solutions
Save
Terms in this set (59)
What is the name given to the Case Law
collection of written decisions?
Explain the concept of the Rule of Current court decisions must follow those made in
Precedent. cases having similar circumstances, which allows
the development of a logical body of general
principles against which specific cases to be
compared.
Explain the meaning of the term Compensation in money for the loss or damage
"damages". suffered.
Compensatory damages for bodily 1. extent of financial support provided by the
injury are an amalgamation of injured party to his or her family
general and special damages, and 2. social position
based on a number of factors which 3. reputation
the courts take into account. 4. financial circumstances
5. ability of the plaintiff's legal representative
State four factors that influence the
determination of
compensatory damages.
,Explain the assumption that lies at Based on the assumption that certain activities are
the centre of the Doctrine of Strict so hazardous that, in the event of injury or damage
Liability. arising out of them, the person conducting the
activity shall be presumed to be legal liable
Identify two activities that impose The setting off of explosives , the lighting of fires,
strict liability on the person the operation of aircraft, the keeping of a
conducting the activity. dangerous thing on the premises, such as water in a
dam or cistern; gas; electricity; wild animals.
What is the position of the defendant The defendant has the right to establish a defense
in a legal action when the law deems against an action alleging strict liability.
the defendant strictly liable?
What determines if a product is A defective product is one that contained
defective? something that it should not have; or something
that should have been there was omitted in its
manufacture.
The Sale of Goods Act sets out the fitness of a business's product(s) for a particular
contractual responsibilities of sellers purpose
for their products. This Statute Law
contains a number of implied
warranties that form part of every
contract for the sale of goods.
Identify one implied warranty which
is of significance to sellers of
products.
, The Sale of Goods Act also When a buyer makes known the particular purpose
addresses a buyer's responsibility to for which the goods are required, and relies on the
exercise care as to the suitability and seller's skill or judgment, there is an implied
quality of the products purchased. condition that the goods will be reasonably fit for
such purpose. If they are not, the seller will be
State the exception to this general liable for damages should injury or property
rule. damage result from their use.
Your client, the proprietor of pub, is NOT COVERED - REFERENCE: Ch. 2, pg. 4
insured under the Commercial
General Liability Policy. Indicate
whether or not the policy would
respond in the following instances.
State COVERED or NOT COVERED
The insured entered a claim for the
recovery of a $1,000 payment made
as a goodwill gesture to a customer,
a well-known entertainer, who
injured himself during a fall from a
bar stool
Answers – A+ Graded with Expert Solutions
Save
Terms in this set (59)
What is the name given to the Case Law
collection of written decisions?
Explain the concept of the Rule of Current court decisions must follow those made in
Precedent. cases having similar circumstances, which allows
the development of a logical body of general
principles against which specific cases to be
compared.
Explain the meaning of the term Compensation in money for the loss or damage
"damages". suffered.
Compensatory damages for bodily 1. extent of financial support provided by the
injury are an amalgamation of injured party to his or her family
general and special damages, and 2. social position
based on a number of factors which 3. reputation
the courts take into account. 4. financial circumstances
5. ability of the plaintiff's legal representative
State four factors that influence the
determination of
compensatory damages.
,Explain the assumption that lies at Based on the assumption that certain activities are
the centre of the Doctrine of Strict so hazardous that, in the event of injury or damage
Liability. arising out of them, the person conducting the
activity shall be presumed to be legal liable
Identify two activities that impose The setting off of explosives , the lighting of fires,
strict liability on the person the operation of aircraft, the keeping of a
conducting the activity. dangerous thing on the premises, such as water in a
dam or cistern; gas; electricity; wild animals.
What is the position of the defendant The defendant has the right to establish a defense
in a legal action when the law deems against an action alleging strict liability.
the defendant strictly liable?
What determines if a product is A defective product is one that contained
defective? something that it should not have; or something
that should have been there was omitted in its
manufacture.
The Sale of Goods Act sets out the fitness of a business's product(s) for a particular
contractual responsibilities of sellers purpose
for their products. This Statute Law
contains a number of implied
warranties that form part of every
contract for the sale of goods.
Identify one implied warranty which
is of significance to sellers of
products.
, The Sale of Goods Act also When a buyer makes known the particular purpose
addresses a buyer's responsibility to for which the goods are required, and relies on the
exercise care as to the suitability and seller's skill or judgment, there is an implied
quality of the products purchased. condition that the goods will be reasonably fit for
such purpose. If they are not, the seller will be
State the exception to this general liable for damages should injury or property
rule. damage result from their use.
Your client, the proprietor of pub, is NOT COVERED - REFERENCE: Ch. 2, pg. 4
insured under the Commercial
General Liability Policy. Indicate
whether or not the policy would
respond in the following instances.
State COVERED or NOT COVERED
The insured entered a claim for the
recovery of a $1,000 payment made
as a goodwill gesture to a customer,
a well-known entertainer, who
injured himself during a fall from a
bar stool
