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B is corrent because both parties were unaware of the fact that the car had been stolen, and entered the contract under a mutual mistake of a material fact. Consequently, the contract is voidable at the option of either party.
A is incorrect because there is no evidence to support the theory that Jack has a superior bargaining position or has otherwise taken unfair advantage of Pam.
C is incorrect because the Statute of Frauds under the UCC requires written evidence of the contract only for the sale of goods for $500 or more. Therefore, a writing would not be required in this situation so the Statute of Frauds would not cause the contract to be unenforceable.
D is incorrect because under the UCC, absent any breach, the risk of loss passes from a nonmerchant seller to the buyer on tender of delivery. However, in this situation, the risk of loss did not pass to Jack because the car had been stolen and tender of delivery never occurred.