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31 August, 01:33

George and Susan open a dry-cleaning business together, but do not execute any documents or perform any formalities other than obtaining a "d/b/a" certificate for their business name: "G & S Clean." One day, when George is out for lunch, Susan burns a large hole in a customer's fur coat while cleaning it. Who is liable for the cost of the coat?

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  1. 31 August, 02:46
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    G & S is liable for the damage made to the fur coat and since George and Susan are G & S's proprietors, then they are also liable.

    Explanation:

    A doing business certificate (DBA) allows the business to start operating under a name which is not necessarily their legal name, instead it is the name they like for their business. But the DBA certificate s issued by the state's authority, and since both George ad Susan applied for the certificate together, they are both responsible and liable.
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