3 Practice Exam

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. {Ans: fitness of a business's product(s) for a particular purpose}Explain the meaning of the term "damages". {Ans: Compensation in money for the loss or damage suffered.}The insured's friend, an electrician, was installing new light fixtures in the insured's beauty salon. During the installation a glass lamp shade shattered and a falling piece cut a customer who required medical attention. It turned out that the electrician did not have liability insurance. As friends often help each other out, the insured agreed to take the blame for the injury to the customer. State COVERED or NOT COVERED {Ans: NOT COVERED}What is the name given to the collection of written decisions? {Ans: Case Law}b) Explain how the financial consequences of a loss can be measured {Ans: measured according to the likelihood of a loss occurring which is the frequency combined with the seriousness or severity of losses that could occur.}c) Indicate