1) Mary is a DJ and drives a late model Ford Transit van. But she'd like to drive something that makes more of a statement than a white van when she isn't working. But she doesn't want to sell the van because it is essential for her business. A financial adviser friend Simon has a solution. This is to transfer title to a finance company for a lump sum and enter into a lease agreement which will enable her to maintain possession of the van and enjoy a tax deduction on her monthly payments. She would then have enough money to buy a second hand Svalbard X1.

Mary thinks this is a great idea and hands Simon the Transit Van registration papers so he can negotiate the deal but then forgets about it. Simon eventually arranges to have title in the van transferred to Shark Finance for $20,000 and a lease agreement is drafted.

However a few days later Mary sells the Transit Van to Susie for $20,000 and Susie drives off with it.

Shark Finance discovers this transaction and claims that the Transit Van belongs to them whereas Susie asserts ownership. Who will prevail in these facts? Shark Finance or Susie?

(2) Spectacular Motors has a stock of vehicles some of which are on a floor plan. That is, the possession of the vehicles is financed by a transfer of title to Shark Finance. Spectacular Motors is having liquidity problems and sells some of the vehicles through an agent to Hellonwheels in an after-hours transaction. Hellonwheels has no knowledge of the floor plan arrangement.

Will Hellonwheels receive good title to the vehicles?