CAIB 3 EXAM NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
What are two duties of sellers? - ANSWER-i) Sellers are expected
to be experts in the products they sell
ii) Sellers are expected to tell the truth about their products
What two conditions must be present for a completed operations
loss to succeed? - ANSWER-i) Loss must occur away from
premises of person doing work
ii) Work must have been completed or abandoned by person
doing work
What are two ways tenants may be found liable for damage to
premises they occupy? - ANSWER-i) Tenants may be responsible
for losses in contract
ii) Tenants may be responsible for losses in tort
What standard of care do Bailees owe to their customers? -
ANSWER-Bailees must use ordinary care when possessing
other's property
,2|Page
What is the common law rule respecting employer's liability for
torts of their staff? - ANSWER-Employers are responsible for torts
of employees commitment while doing their normal actions in their
job
When will employers not be held responsible for the torts of staff?
- ANSWER-i) When employees delegate their work to someone
else without employer's permission
ii) When employees frolic
iii) When employees use employers property without permission
Generally are employers responsible for injuries sustained by
employees arising
out of the course of their employment? Explain your answer. -
ANSWER-No, employers will not be responsible for injuries to
employees because most employees are enrolled in provincial
workers compensation plans. When eligible for benefits under
these plans, employees give up their right to sue employers.
What is the name given to the collection of written decisions? -
ANSWER-Case Law
,3|Page
Explain the concept of the Rule of Precedent. - 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". - ANSWER-
Compensation in money for the loss or damage suffered.
Explain the assumption that lies at the centre of the Doctrine of
Strict Liability. - 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. - 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.
, 4|Page
What is the position of the defendant in a legal action when the
law deems the defendant strictly liable? - ANSWER-The
defendant has the right to establish a defense against an action
alleging strict liability.
What determines if a product is defective? - 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. - ANSWER-fitness of a business's product(s) for a
particular purpose