Express Warranty correct answers 1) Goods confirm to any affirmation of fact or promise
2) Goods conform to any description of them
3) The goods conform to any sample or model
Implied Warranty correct answers an unwritten guarantee that the good or service is fit for the purpose for which it w...
BUL 3130 Exam 3 || with Complete Solutions.
Express Warranty correct answers 1) Goods confirm to any affirmation of fact or promise
2) Goods conform to any description of them
3) The goods conform to any sample or model
Implied Warranty correct answers an unwritten guarantee that the good or service is fit for the
purpose for which it was sold
implied warranty of merchantability correct answers A warranty that goods being sold or leased
are reasonably fit for the ordinary purpose for which they are sold or leased, are properly
packaged and labeled, and are of fair quality. The warranty automatically arises in every sale or
lease of goods made by a merchant who deals in goods of the kind sold or leased.
implied warranty of fitness for a particular purpose correct answers arises when:
1) the particular purpose for which a buyer or lessor will use the goods
2)that the buyer or lessor is relying on the skill and judgment of the seller or lessor to select
suitable goods
implied warranties from prior dealings or trade custom correct answers use of a trade custom
the agent correct answers a person who acts or does business for another
the principal correct answers has the right to control the agent's conduct in matters entrusted to
the agent
Agency by Agreement correct answers is an agency relationship that is created by an oral or
written contract between the agent and principal.
Agency by Ratification correct answers person who is not an agent makes a contract on the
behalf of the principal
*involves question of intent, intent expressed by either words or conduct
Agency by Estoppel correct answers is an agency relationship that is created because the
principal's action caused a third party to believe that an agency relationship exists.
Agent's Duties to the Principal correct answers performance, standard of care, notification,
loyalty, obedience, accounting
Principal's Duties to Agent correct answers compensation, reimbursement and indemnification,
cooperation, safe working conditions
Express Authority correct answers the authority of an agent, stated in the document or agreement
creating the agency
, Implied Authority correct answers Authority that is not expressed or written into the contract, but
which the agent is assumed to have in order to transact the business of insurance for the
principal.
Apparent Authority correct answers when the principal, by either word or action, causes a third
party reasonably to believe that the agent has authority to act, even though the agent has no
express or implied authority
respondent superior correct answers A doctrine under which a principal or an employer is held
liable for the wrongful acts committed by agents or employees while acting within the course
and scope of their agency or employment.
*"Let the Master Act"
Vicarious Liability correct answers I. indirect liability
II. principal-employer being held liable for the torts committed by an agent-employee
Sole Proprietorship correct answers the owner is the business
General Partnership correct answers A partnership in which all owners share in operating the
business and in assuming liability for the business's debts.
Advantages of Sole Proprietorship correct answers ease of formation, retention of control, pride
of ownership, retention of profits, possible tax advantage
Disadvantages of Sole Proprietorship correct answers unlimited liability, lack of continuity, lack
of money, limited management skills, difficulty in hiring employees
Advantages of General Partnership correct answers ability to pool financial resources, ability to
share responsibilities and capitalize on complementary skills, ease of formation, possible tax
advantages
disadvantages of General Partnerships correct answers unlimited liability, potential for
disagreements, lack of continuity, difficulty in withdrawing from a partnership
The Uniform Partnership Act (UPA) correct answers I. govern s the operation of partnerships in
absence of express agreement
II. has down much to reduce controversies in the law relating to partnerships
Partnerships as defined by UPA correct answers "an association of two or more persons to carry
on a s co-owners a business for profit" [UPA 102(11)]
Essential Elements of a Partnership correct answers 1. A sharing of profits and losses
2. A joint ownership of the business
3. An equal right to be involved in the management of the business
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