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CAIB 3 EXAM NEWEST 2025 ACTUAL EXAM
COMPLETE 200 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS )
|ALREADY GRADED A+ ||BRAND NEW!!
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
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. - 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 1 / 4
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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 - ANSWER-NOT COVERED - REFERENCE: Ch. 2, pg.
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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 2 / 4
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by the band that was hired to perform at this event. - ANSWER-
NOT COVERED - REFERENCE: Ch. 2, pg. 10
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 received a $3,000 bill for a dental procedure from a customer who broke a tooth when she bit on a piece of bone in the pizza she had consumed at the pub. The customer had informed the server of the incident - ANSWER-COVERED -
REFERENCE: Ch. 2, pg. 3, 5
The Commercial General Liability Policy does not respond to claims against the insured for bodily injuries sustained by employees while performing the duties of their job.
State the underlying reason for this exclusion. - ANSWER- Because most employees are covered under the provincial Workers' Compensation Plan. Coverage is provided on a no fault basis.
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What options are available to the insured to cover this exposure?
- ANSWER-To purchase Employer's Liability coverage or
voluntarily enrol all employees under the provincial Workers' Compensation Plan.
The insured hired a roofing contractor to replace the old tar and gravel roof on the insured's building, which is flanked by two other buildings not owned by the insured. The insured agreed to assume the contractor's liability, which resulted in the reduction of the contract price for the insured. During the work a spark from the fire that heated the tar ignited setting the roof on fire which spread within minutes to one of the adjacent buildings causing serious damage to it. The court held the insured liable for the damage. State COVERED or NOT COVERED -
ANSWER-COVERED
One winter day a pedestrian slipped and fell on the icy sidewalk right in front of the insured's business premises located at a small strip mall and fractured a leg. The mall owner maintained the premises and cleared the entire sidewalk of snow and ice during the winter months. The insured had signed a lease agreement which contained a clause that held the landlord harmless for bodily injury or property damage. State COVERED or NOT COVERED - ANSWER-COVERED
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