Canadian Accredited Insurance Broker (CAIB) One Practice Exam

For what type of acts is strict liability typically applied?

1. Acting within the law

2. Inherently dangerous activities

3. Negligent actions

4. Standard business practices

The correct answer is: Inherently dangerous activities

Strict liability is a legal concept that holds a party responsible for their actions or products without the need to prove negligence or fault. It is typically applied in cases involving inherently dangerous activities. These can include activities that pose a significant risk of harm even when all safety precautions are taken. Examples often include the use of hazardous materials, the operation of explosive devices, or the keeping of wild animals. The rationale behind strict liability in these situations is that society recognizes the elevated risks involved, and therefore, those who engage in such activities have a higher responsibility to ensure that they do not cause harm to others, regardless of their intent or care taken. This serves both as a deterrent against reckless behavior and as a mechanism to ensure that victims can obtain compensation more easily when harm occurs. In contrast, acts like simply acting within the law, negligent actions, or standard business practices involve varying degrees of fault and responsibility that do not inherently trigger strict liability. In those cases, proving negligence or a violation of industry standards is necessary to establish liability.