CAIB 3 PRACTICE EXAM WITH ACTUAL QUESTIONS
AND WELL RESEARCHED ANSWERS FROM A
VERIFIED SOURCE GRADED A+.
What is the name given to the collection of written decisions? - ANSWERS-
Case Law
Explain the concept of the Rule of Precedent. - ANSWERS-Current court
decisions must follow those made in 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 "damages". - ANSWERS-Compensation in
money for the loss or damage suffered.
Compensatory damages for bodily injury are an amalgamation of general
and special damages, and based on a number of factors which the courts
take into account.
State four factors that influence the determination of
compensatory damages. - ANSWERS-1. extent of financial support
provided by the injured party to his or her family
2. social position
3. reputation
4. financial circumstances
5. ability of the plaintiff's legal representative
Explain the assumption that lies at the centre of the Doctrine of Strict
Liability. - ANSWERS-Based on the assumption that certain activities are so
hazardous that, in the event of injury or damage arising out of them, the
person conducting the activity shall be presumed to be legal liable
Identify two activities that impose strict liability on the person conducting
the activity. - ANSWERS-The setting off of explosives , the lighting of fires,
, the operation of aircraft, the keeping of a dangerous thing on the premises,
such as water in a dam or cistern; gas; electricity; wild animals.
What is the position of the defendant in a legal action when the law deems
the defendant strictly liable? - ANSWERS-The defendant has the right to
establish a defense against an action alleging strict liability.
What determines if a product is defective? - ANSWERS-A defective product
is one that contained 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 contractual responsibilities of sellers 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.
- ANSWERS-fitness of a business's product(s) for a particular purpose
The Sale of Goods Act also addresses a buyer's responsibility to exercise
care as to the suitability and quality of the products purchased.
State the exception to this general rule. - ANSWERS-When a buyer makes
known the particular purpose for which the goods are required, and relies
on the seller's skill or judgment, there is an implied condition that the goods
will be reasonably fit for such purpose. If they are not, the seller will be
liable for damages should injury or property damage result from their use.
Your client, the proprietor of pub, is 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-NOT COVERED -
REFERENCE: Ch. 2, pg. 4
Your client, the proprietor of pub, is insured under the Commercial General
Liability Policy. Indicate whether or not the policy would respond in the
following instances. State COVERED or NOT COVERED
AND WELL RESEARCHED ANSWERS FROM A
VERIFIED SOURCE GRADED A+.
What is the name given to the collection of written decisions? - ANSWERS-
Case Law
Explain the concept of the Rule of Precedent. - ANSWERS-Current court
decisions must follow those made in 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 "damages". - ANSWERS-Compensation in
money for the loss or damage suffered.
Compensatory damages for bodily injury are an amalgamation of general
and special damages, and based on a number of factors which the courts
take into account.
State four factors that influence the determination of
compensatory damages. - ANSWERS-1. extent of financial support
provided by the injured party to his or her family
2. social position
3. reputation
4. financial circumstances
5. ability of the plaintiff's legal representative
Explain the assumption that lies at the centre of the Doctrine of Strict
Liability. - ANSWERS-Based on the assumption that certain activities are so
hazardous that, in the event of injury or damage arising out of them, the
person conducting the activity shall be presumed to be legal liable
Identify two activities that impose strict liability on the person conducting
the activity. - ANSWERS-The setting off of explosives , the lighting of fires,
, the operation of aircraft, the keeping of a dangerous thing on the premises,
such as water in a dam or cistern; gas; electricity; wild animals.
What is the position of the defendant in a legal action when the law deems
the defendant strictly liable? - ANSWERS-The defendant has the right to
establish a defense against an action alleging strict liability.
What determines if a product is defective? - ANSWERS-A defective product
is one that contained 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 contractual responsibilities of sellers 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.
- ANSWERS-fitness of a business's product(s) for a particular purpose
The Sale of Goods Act also addresses a buyer's responsibility to exercise
care as to the suitability and quality of the products purchased.
State the exception to this general rule. - ANSWERS-When a buyer makes
known the particular purpose for which the goods are required, and relies
on the seller's skill or judgment, there is an implied condition that the goods
will be reasonably fit for such purpose. If they are not, the seller will be
liable for damages should injury or property damage result from their use.
Your client, the proprietor of pub, is 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-NOT COVERED -
REFERENCE: Ch. 2, pg. 4
Your client, the proprietor of pub, is insured under the Commercial General
Liability Policy. Indicate whether or not the policy would respond in the
following instances. State COVERED or NOT COVERED