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CAIB 3 Practice Exam – Questions And Answers
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CAIB 3 Practice Exam – Questions And Answers
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CAIB 3 Practice Exam – Questions And AnswersWhat is the name given to the collection of written decisions? ✔️Ans - Case
Law
Explain the concept of the Rule of Precedent. ✔️Ans - 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". ✔️Ans - 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. ✔️Ans - 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.
✔️Ans - 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. ✔️Ans - 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? ✔️Ans - The defendant has the right to establish a
defense against an action alleging strict liability.
, What determines if a product is defective? ✔️Ans - 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.
✔️Ans - 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. ✔️Ans - 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 ✔️Ans - 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
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.
✔️Ans - NOT COVERED - REFERENCE: Ch. 2, pg. 10
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