CAIB 3 FINAL EXAM ACTUAL QUESTIONS AND ANSWERS
GUARANTEE A+
✔✔Explain the liability of the building owner for 'multiple occupancy building' - ✔✔The
landlord is responsible to both the tenant and persons who enter onto the premises only
for the condition of areas common to all occupencies
✔✔Identify three examples of Nuisance - ✔✔1. Smoke, odours, noxious vapours or
fumes
2. Noise or vibrations
3. Pollution of land and waterways from harmful wastes
✔✔Identify two examples of Trespass - ✔✔1. Erecting a building so that a part of it
overhangs onto a neighbours land
2. Dumping of waste materials on the land of another
✔✔Identify what constitutes a defective product - ✔✔Contained something it should not
have or
Something was omitted in its manufacture that should have been there
✔✔For the purpose of the definitions in a liability policy, if a defective product is
consumed on the premises of the client, it is a 'premises claim'. However to be
considered a 'product claim' identify the two conditions that need to exist - ✔✔Occurred
away from the premises of the seller; and
The seller had clearly relinquished possession of the defective product
✔✔Identify the two ways an action for damages caused by a defective product can be
brought - ✔✔Contract
or
Tort
✔✔Identify the implied warranty with respect to the products of sellers - ✔✔The fitness
of a business's products for a particular use
✔✔Explain what the law expects of buyers and the exception to this rule - ✔✔Must
exercise care as to the suitability and quality of the goods purchased by them.
Exception: When the buyer makes known the particular purpose for which the goods
are required and relies on the seller's skill or judgement, there is an implied condition
that the goods will be reasonably fit for such purpose
✔✔Identify the result of the decision in the care of Donaghue vs Stevenson (1932) -
✔✔The responsibility of manufacturers for their negligence was extended to the ultimate
users of their products, not just the purchaser
, ✔✔Identify two duties of manufacturers with respect to product defects - ✔✔1. Safe
design
2. Safe manufacture, construction, assembly and packaging
✔✔Identify two duties of manufacturers with respect to products even if it is not
defective - ✔✔1. Give proper warning of dangers which can occur in using the products
2. Provide instructions, if needed
✔✔Identify two duties of sellers about their products - ✔✔1. To be experts when it
comes to the ingredients and properties of the articles they sell
2. Are expected to tell the truth about them
✔✔For the purposes of the definitions in a liability policy if an injury occurs as a result of
an ongoing operation, it is considered a 'premises and operations' claim. To be
considered a 'completed operation' claim, identify the two conditions that need to be
present - ✔✔1. Occurred away from the premises of the person doing the work
2. That such work has been completed or abandoned
✔✔Identify five types of claims that may be alleged under the 'completed operations'
exposure - ✔✔1. Work not as warranted, even though not performed erroneously or
with in appropriate materials
2. Use of defective materials, parts or equipment
3. Damage to completed work arising out of the work or out of the materials or
equipment furnished
4. Improper performance of a completed task
5. Failure if the contractor to withdraw, inspect, repair or replace any defective work
which has been completed
✔✔Identify seven types of claims that would fall under the insurance definition of
Personal Injury - ✔✔1. Wrongful arrest
2. Wrongful entry
3. Actions causing severe emotional or mental distress
4. Malicious prosecution
5. Unlawful interference with one's property
6. Slander
7. Libel
✔✔Identify three examples of businesses that might have a 'personal injury' exposure -
✔✔1. Those that employ store detectives
2. Landlords
3. Newspapers and broadcasters
✔✔Identify two types of Real Property - ✔✔1. Building
2. Fixed equipment
GUARANTEE A+
✔✔Explain the liability of the building owner for 'multiple occupancy building' - ✔✔The
landlord is responsible to both the tenant and persons who enter onto the premises only
for the condition of areas common to all occupencies
✔✔Identify three examples of Nuisance - ✔✔1. Smoke, odours, noxious vapours or
fumes
2. Noise or vibrations
3. Pollution of land and waterways from harmful wastes
✔✔Identify two examples of Trespass - ✔✔1. Erecting a building so that a part of it
overhangs onto a neighbours land
2. Dumping of waste materials on the land of another
✔✔Identify what constitutes a defective product - ✔✔Contained something it should not
have or
Something was omitted in its manufacture that should have been there
✔✔For the purpose of the definitions in a liability policy, if a defective product is
consumed on the premises of the client, it is a 'premises claim'. However to be
considered a 'product claim' identify the two conditions that need to exist - ✔✔Occurred
away from the premises of the seller; and
The seller had clearly relinquished possession of the defective product
✔✔Identify the two ways an action for damages caused by a defective product can be
brought - ✔✔Contract
or
Tort
✔✔Identify the implied warranty with respect to the products of sellers - ✔✔The fitness
of a business's products for a particular use
✔✔Explain what the law expects of buyers and the exception to this rule - ✔✔Must
exercise care as to the suitability and quality of the goods purchased by them.
Exception: When the buyer makes known the particular purpose for which the goods
are required and relies on the seller's skill or judgement, there is an implied condition
that the goods will be reasonably fit for such purpose
✔✔Identify the result of the decision in the care of Donaghue vs Stevenson (1932) -
✔✔The responsibility of manufacturers for their negligence was extended to the ultimate
users of their products, not just the purchaser
, ✔✔Identify two duties of manufacturers with respect to product defects - ✔✔1. Safe
design
2. Safe manufacture, construction, assembly and packaging
✔✔Identify two duties of manufacturers with respect to products even if it is not
defective - ✔✔1. Give proper warning of dangers which can occur in using the products
2. Provide instructions, if needed
✔✔Identify two duties of sellers about their products - ✔✔1. To be experts when it
comes to the ingredients and properties of the articles they sell
2. Are expected to tell the truth about them
✔✔For the purposes of the definitions in a liability policy if an injury occurs as a result of
an ongoing operation, it is considered a 'premises and operations' claim. To be
considered a 'completed operation' claim, identify the two conditions that need to be
present - ✔✔1. Occurred away from the premises of the person doing the work
2. That such work has been completed or abandoned
✔✔Identify five types of claims that may be alleged under the 'completed operations'
exposure - ✔✔1. Work not as warranted, even though not performed erroneously or
with in appropriate materials
2. Use of defective materials, parts or equipment
3. Damage to completed work arising out of the work or out of the materials or
equipment furnished
4. Improper performance of a completed task
5. Failure if the contractor to withdraw, inspect, repair or replace any defective work
which has been completed
✔✔Identify seven types of claims that would fall under the insurance definition of
Personal Injury - ✔✔1. Wrongful arrest
2. Wrongful entry
3. Actions causing severe emotional or mental distress
4. Malicious prosecution
5. Unlawful interference with one's property
6. Slander
7. Libel
✔✔Identify three examples of businesses that might have a 'personal injury' exposure -
✔✔1. Those that employ store detectives
2. Landlords
3. Newspapers and broadcasters
✔✔Identify two types of Real Property - ✔✔1. Building
2. Fixed equipment
