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CAIB 3 EXAM NEWEST 2025/2026 ACTUAL EXAM
COMPLETE QUESTIONS AND 100%CORRECT
DETAILED ANSWERS (VERIFIED AND GRADED
A+|NEWEST UPDATE
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. - ANSWER-fitness of a business's
product(s) for a particular purpose
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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. - ANSWER-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
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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 - ANSWER-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
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The insured had to cancel the booking of the pub for a
large private event because a ruptured pipe had caused
serious water damage to the premises and the restoration
would not be completed in time. The insured was sued for
breach of contract by the band that was hired to perform at
this event. - ANSWER-NOT COVERED - REFERENCE:
Ch. 2, pg. 10
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
Insurers limit their financial risk under the Commercial
General Liability policy by restricting the maximum amount
CAIB 3 EXAM NEWEST 2025/2026 ACTUAL EXAM
COMPLETE QUESTIONS AND 100%CORRECT
DETAILED ANSWERS (VERIFIED AND GRADED
A+|NEWEST UPDATE
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. - ANSWER-fitness of a business's
product(s) for a particular purpose
,2|Page
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. - ANSWER-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
,3|Page
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 - ANSWER-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
, 4|Page
The insured had to cancel the booking of the pub for a
large private event because a ruptured pipe had caused
serious water damage to the premises and the restoration
would not be completed in time. The insured was sued for
breach of contract by the band that was hired to perform at
this event. - ANSWER-NOT COVERED - REFERENCE:
Ch. 2, pg. 10
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
Insurers limit their financial risk under the Commercial
General Liability policy by restricting the maximum amount
