Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

What is the exception to the buyer’s responsibility regarding suitability of products?

1. When the product is on sale

2. When the buyer relies on the seller's expertise

3. When a receipt is provided

4. When the product is a branded item

The correct answer is: When the buyer relies on the seller's expertise

The exception to the buyer’s responsibility regarding the suitability of products occurs when the buyer relies on the seller's expertise. In situations where a buyer seeks guidance or advice from the seller about the product's use or applicability, the expectation shifts towards the seller being responsible for providing accurate information. This is particularly relevant in complex transactions where the buyer might not have sufficient knowledge to evaluate the product's suitability for their needs. For example, if a customer approaches a specialist store looking for equipment and the seller provides professional advice on which product would best serve the customer's specific purpose, the buyer can assume that the seller's recommendations are reliable. Therefore, if the product ultimately turns out to be unsuitable based on the seller's guidance, the responsibility does not fall solely on the buyer. In contrast, scenarios such as products being on sale, receipt provision, or branding do not inherently influence the buyer's responsibility regarding the assessment of suitability. These factors do not alter the fundamental expectation that buyers are responsible for ensuring a product meets their needs unless they are actively relying on the seller’s expertise.