CAIB 3 Practice Exam Questions with Answers
What is the name given to the collection of written decisions? - ✔✔Case Law
Explain the concept of the Rule of Precedent. - ✔✔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". - ✔✔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. - ✔✔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. - ✔✔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. - ✔✔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? - ✔✔The defendant has the right to establish a defense against an action alleging
strict liability.
What determines if a product is defective? - ✔✔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. - ✔✔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. - ✔✔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 -
✔✔NOT COVERED - REFERENCE: Ch. 2, pg. 4
What is the name given to the collection of written decisions? - ✔✔Case Law
Explain the concept of the Rule of Precedent. - ✔✔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". - ✔✔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. - ✔✔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. - ✔✔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. - ✔✔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? - ✔✔The defendant has the right to establish a defense against an action alleging
strict liability.
What determines if a product is defective? - ✔✔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. - ✔✔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. - ✔✔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 -
✔✔NOT COVERED - REFERENCE: Ch. 2, pg. 4
