BUL 3130 Exam 3 | UPDATED Questions with 100% Verified
Answers
Question: Express Warranty
Answer:
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
Question: Implied Warranty
Answer:
an unwritten guarantee that the good or service is fit for the purpose for which it was sold
Question: implied warranty of merchantability
Answer:
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.
Question: implied warranty of fitness for a particular purpose
Answer:
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
Question: implied warranties from prior dealings or trade custom
Answer:
use of a trade custom
Question: the agent
Answer:
a person who acts or does business for another
Question: the principal
Answer:
has the right to control the agent's conduct in matters entrusted to the agent
Question: Agency by Agreement
, Answer:
is an agency relationship that is created by an oral or written contract between the agent and principal.
Question: Agency by Ratification
Answer:
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
Question: Agency by Estoppel
Answer:
is an agency relationship that is created because the principal's action caused a third party to believe that an
agency relationship exists.
Question: Agent's Duties to the Principal
Answer:
performance, standard of care, notification, loyalty, obedience, accounting
Question: Principal's Duties to Agent
Answer:
compensation, reimbursement and indemnification, cooperation, safe working conditions
Question: Express Authority
Answer:
the authority of an agent, stated in the document or agreement creating the agency
Question: Implied Authority
Answer:
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.
Question: Apparent Authority
Answer:
Answers
Question: Express Warranty
Answer:
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
Question: Implied Warranty
Answer:
an unwritten guarantee that the good or service is fit for the purpose for which it was sold
Question: implied warranty of merchantability
Answer:
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.
Question: implied warranty of fitness for a particular purpose
Answer:
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
Question: implied warranties from prior dealings or trade custom
Answer:
use of a trade custom
Question: the agent
Answer:
a person who acts or does business for another
Question: the principal
Answer:
has the right to control the agent's conduct in matters entrusted to the agent
Question: Agency by Agreement
, Answer:
is an agency relationship that is created by an oral or written contract between the agent and principal.
Question: Agency by Ratification
Answer:
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
Question: Agency by Estoppel
Answer:
is an agency relationship that is created because the principal's action caused a third party to believe that an
agency relationship exists.
Question: Agent's Duties to the Principal
Answer:
performance, standard of care, notification, loyalty, obedience, accounting
Question: Principal's Duties to Agent
Answer:
compensation, reimbursement and indemnification, cooperation, safe working conditions
Question: Express Authority
Answer:
the authority of an agent, stated in the document or agreement creating the agency
Question: Implied Authority
Answer:
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.
Question: Apparent Authority
Answer:
