Joe Was a Chauffeur, Working for Sam

question 184

Essay

Joe was a chauffeur, working for Sam. When Joe was taking the car in to have it serviced, he saw a brand new BMW and bought it on behalf of Sam. When he took it home, Sam was upset, explained that he didn't want a new BMW, and told him to take it back. Joe persuaded him to take it for a test drive first. Explain the legal position of the parties.

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Definitions:

Depreciation

The systematic reduction of the recorded cost of a fixed asset to reflect its loss in value over time, often due to wear and tear or obsolescence.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, reflecting the actual profit made.

Gross Profit

The financial difference between the revenue generated from sales and the cost of goods sold, not accounting for other operating expenses.