5/25/25, 1:28 PM CAIB 3 Practice Exam
CAIB 3 Practice Exam\\LATEST VERSION
\\COMPLETE QUESTIONS AND ACCURATE
ANSWERS (VERIFIED ANSWERS) RATED A+
What is the name given to Case Law
the collection of written
decisions?
Current court decisions must follow those made in
Explain the concept of the cases having similar circumstances, which allows the
Rule of Precedent. development of a logical body of general principles
against which specific cases to be compared.
Explain the meaning of the Compensation in money for the loss or damage
term "damages". suffered.
Compensatory damages 1. extent of financial support provided by the injured
for bodily injury are an party to his or her family
amalgamation of general 2. social position
and special damages, and 3. reputation
based on a number of 4. financial circumstances
factors which the courts 5. ability of the plaintiff's legal representative
take into account.
State four factors that
influence the
determination of
compensatory damages.
Explain the assumption Based on the assumption that certain activities are so
that lies at the centre of hazardous that, in the event of injury or damage
the Doctrine of Strict arising out of them, the person conducting the activity
Liability. shall be presumed to be legal liable
1/26
,5/25/25, 1:28 PM CAIB 3 Practice Exam
Identify two activities that The setting off of explosives , the lighting of fires, the
impose strict liability on operation of aircraft, the keeping of a dangerous thing
the person conducting the on the premises, such as water in a dam or cistern;
activity. gas; electricity; wild animals.
What is the position of the The defendant has the right to establish a defense
defendant in a legal action against an action alleging strict liability.
when the law deems the
defendant strictly liable?
A defective product is one that contained something
What determines if a
that it should not have; or something that should have
product is defective?
been there was omitted in its manufacture.
The Sale of Goods Act fitness of a business's product(s) for a particular
sets out the contractual purpose
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.
2/26
, 5/25/25, 1:28 PM CAIB 3 Practice Exam
The Sale of Goods Act When a buyer makes known the particular purpose
also addresses a buyer's for which the goods are required, and relies on the
responsibility to exercise seller's skill or judgment, there is an implied condition
care as to the suitability that the goods will be reasonably fit for such purpose.
and quality of the If they are not, the seller will be liable for damages
products purchased. should injury or property damage result from their
use.
State the exception to this
general rule.
Your client, the proprietor NOT COVERED - REFERENCE: Ch. 2, pg. 4
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
3/26
CAIB 3 Practice Exam\\LATEST VERSION
\\COMPLETE QUESTIONS AND ACCURATE
ANSWERS (VERIFIED ANSWERS) RATED A+
What is the name given to Case Law
the collection of written
decisions?
Current court decisions must follow those made in
Explain the concept of the cases having similar circumstances, which allows the
Rule of Precedent. development of a logical body of general principles
against which specific cases to be compared.
Explain the meaning of the Compensation in money for the loss or damage
term "damages". suffered.
Compensatory damages 1. extent of financial support provided by the injured
for bodily injury are an party to his or her family
amalgamation of general 2. social position
and special damages, and 3. reputation
based on a number of 4. financial circumstances
factors which the courts 5. ability of the plaintiff's legal representative
take into account.
State four factors that
influence the
determination of
compensatory damages.
Explain the assumption Based on the assumption that certain activities are so
that lies at the centre of hazardous that, in the event of injury or damage
the Doctrine of Strict arising out of them, the person conducting the activity
Liability. shall be presumed to be legal liable
1/26
,5/25/25, 1:28 PM CAIB 3 Practice Exam
Identify two activities that The setting off of explosives , the lighting of fires, the
impose strict liability on operation of aircraft, the keeping of a dangerous thing
the person conducting the on the premises, such as water in a dam or cistern;
activity. gas; electricity; wild animals.
What is the position of the The defendant has the right to establish a defense
defendant in a legal action against an action alleging strict liability.
when the law deems the
defendant strictly liable?
A defective product is one that contained something
What determines if a
that it should not have; or something that should have
product is defective?
been there was omitted in its manufacture.
The Sale of Goods Act fitness of a business's product(s) for a particular
sets out the contractual purpose
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.
2/26
, 5/25/25, 1:28 PM CAIB 3 Practice Exam
The Sale of Goods Act When a buyer makes known the particular purpose
also addresses a buyer's for which the goods are required, and relies on the
responsibility to exercise seller's skill or judgment, there is an implied condition
care as to the suitability that the goods will be reasonably fit for such purpose.
and quality of the If they are not, the seller will be liable for damages
products purchased. should injury or property damage result from their
use.
State the exception to this
general rule.
Your client, the proprietor NOT COVERED - REFERENCE: Ch. 2, pg. 4
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
3/26
