I live in Canada and that's what happens with all of my visa/debit chip cards. If you attempt to swipe your card and it, as well as the terminal, are chip enabled then it gives you an error and asks you to insert your card into the terminal.
That is triggered by the magstripe though. The point here is you can trick the reader by turning off that feature on the magstripe and the reader doesn't do any additional check on whether EMV should be required.
Based upon my knowledge of EMV liability, the merchant would still be clear from fraudulent charges if they had an EMV reader. If the device tells the reader it can't do chip & pin, then the buyer is the least secure part of the transaction.
Not in all cases, I believe. For instance, to use my debit card in China, where a lot of payments is still done via magstripe, I have to call my bank and ask them to enable magstripe transactions for me in their system. Otherwise, the bank will keep rejecting transaction attempts.
