Another driver pulls out in front of you without looking and you hit them. They were clearly in the wrong. Can you still be held responsible for the collision?

Correct answer: B. Yes — everyone is responsible for avoiding collisions, and you may be found responsible if you could have done something to avoid it

Yes, potentially. The Handbook is blunt about where responsibility sits: "everyone is responsible for avoiding collisions. Even if someone else does something wrong, you may be found responsible for a collision if you could have done something to avoid it." Right-of-way is something you give, not something you take — the rules decide who should have gone first, not who is excused from paying attention. This is why the Handbook builds the whole chapter around seeing hazards early: "you must be able to see dangerous situations before they happen and to respond quickly and effectively to prevent them." It also asks you to be predictable, "doing what other people using the road expect you to do", because a driver who behaves unexpectedly makes everyone else's avoidance harder.

Source: MTO Driver's Handbook: Official MTO Driver's Handbook — Safe and responsible driving, responsibility for avoiding collisions