BUL 3130 EXAM 3 QUESTIONS WITH VERIFIED ANSWERS LATEST UPDATE 2026

BUL 3130 EXAM 3 QUESTIONS WITH VERIFIED ANSWERS LATEST UPDATE 2026 Express Warranty - 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 - Answers an unwritten guarantee that the good or service is fit for the purpose for which it was sold implied warranty of merchantability - 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 - 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 - Answers use of a trade custom the agent - Answers a person who acts or does business for another the principal - Answers has the right to control the agent's conduct in matters entrusted to the agent Agency by Agreement - Answers is an agency relationship that is created by an oral or written contract between the agent and principal. Agency by Ratification - 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 - 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 - Answers performance, standard of care, notification, loyalty, obedience, accounting Principal's Duties to Agent - Answers compensation, reimbursement and indemnification, cooperation, safe working conditions Express Authority - Answers the authority of an agent, stated in the document or agreement creating the agency Implied Authority - 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 - 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 - 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 - Answers I. indirect liability II. principal-employer being held liable for the torts committed by an agent-employee Sole Proprietorship - Answers the owner is the business General Partnership - 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 - Answers ease of formation, retention of control, pride of ownership, retention of profits, possible tax advantage Disadvantages of Sole Proprietorship - Answers unlimited liability, lack of continuity, lack of money, limited management skills, difficulty in hiring employees Advantages of General Partnership - 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 - Answers unlimited liability, potential for disagreements, lack of continuity, difficulty in withdrawing from a partnership The Uniform Partnership Act (UPA) - Answers I. govern s the operation of partnerships in absence of express agreement