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CAIB 3 PRACTICE EXAM 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
What is the name given to the collection of written decisions? -
correct answer -Case Law
Explain the concept of the Rule of Precedent. - correct answer -
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". - correct answer -
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
, Page | 2
compensatory damages. - correct answer -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. - correct answer -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. - correct answer -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? - correct answer -The
defendant has the right to establish a defense against an action
alleging strict liability.
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What determines if a product is defective? - correct answer -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. - correct answer -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. - correct 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
CAIB 3 PRACTICE EXAM 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
What is the name given to the collection of written decisions? -
correct answer -Case Law
Explain the concept of the Rule of Precedent. - correct answer -
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". - correct answer -
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
, Page | 2
compensatory damages. - correct answer -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. - correct answer -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. - correct answer -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? - correct answer -The
defendant has the right to establish a defense against an action
alleging strict liability.
, Page | 3
What determines if a product is defective? - correct answer -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. - correct answer -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. - correct 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
