Reference no: EM132163467

1. On impulse, you purchase a truck and ask your friend, Mark, if you can leave the truck at the edge of his store’s parking lot until you can have a concrete pad built to store the truck on your property. Mark agrees. When you return for the truck the next month, it is gone and you find out that Mark sold it. You can:

a. recover the truck because Mark did not have any ownership interest to pass.

b. recover, but only if Mark bought insurance to cover the truck while it was on his property.

c. not recover because you “entrusted” the truck to Mark, who then had a right to sell it.

d. not recover because Mark had only a voidable title to transfer.

2. Alaska Oil, LLC had a contract with Seattle Refinery Company to supply 5,000 gallons of oil by July 1. The contract contained a provision which required all modifications to be written and signed by the company presidents. In early June, an executive of Alaska Oil talked with the purchasing agent of Seattle Refinery who orally agreed to three shipments of oil; one in September, one In November and the third one in December. By September 15, when only 1000 gallons had been delivered, Seattle Refinery sued. The likely outcome of this lawsuit is:

a. Seattle Refinery wins because the modification was not supported by new consideration.

b. Seattle Refinery wins because the modification has to be in writing.

c. Alaska Oil wins because the UCC governs this case and no new consideration is required.

d. Alaska Oil wins because new consideration was present.