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GBL 385 Exam 3 [MSU-Prof. Ross], gbl exam 3. Debra wanted to form a partnership with Lawrence. He agreed and they became co-owners in an equal partnership. This year, after expenses, the partnership had a profit of $200,000. How will the taxation of this profit be handled? A. Since the partnership was Debra's idea, she will pay income tax on the profit on her personal tax return. B. The business will pay half of the tax liability and Debra and Lawrence will pay the other half. C. Debr...

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Ex: Customer brought a suit to a dry cleaner's for cleaning. Accidentally replaced two buttons and charged customer for it. Although the customer received a benefit, he does not have to pay for this service bc it was imposed on him, and thus he was not unjustly enriched under the circumstances. - Unjust Enrichment Rule: Parties exchange oral or written promises that explicity state the terms of their agreement. Ex: When a landlord and a tenant enter into an agreement to lease an apartment,...

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