B737 CAPT REPORTS MALFUNCTIONING ENGINE OIL QUANTITY GAGE TO LINE MAINTENANCE. MAINTENANCE ATTEMPTS TO DEFER REPAIR WITHOUT TROUBLE SHOOTING AND WITHOUT COMPLYING WITH MEL. ACFT IS REFUSED.

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WHILE SETTING UP COCKPIT FOR DEP #1 ENG OIL QUANTITY NOTED AS FLUCTUATING BTWN 60% AND 80%. MAINT REQUEST SENT AND VERBAL NOTIFICATION PASSED TO LINE MAINT. SEVERAL MINS LATER A MECH POPPED HIS HEAD INTO THE COCKPIT AND STATED (WITHOUT ANY INQUIRY) THAT HE WAS DEFERRING THE #1 ENG OIL QUANTITY INDICATOR. I RESPONDED WITH: 'I CAN'T TAKE THE AIRPLANE IN THAT CONDITION.' HE REPLIED: 'WELL; THAT'S WHAT I'M GOING TO DO;' AND LEFT. THERE WAS NO DISCUSSION ABOUT THE CAUSE OR REASON FOR THE MECHANICAL DEFICIENCY FROM THE MECH AND I WAS GIVEN NO OPPORTUNITY TO MAKE GENERAL INQUIRIES TO HIM. FOLLOWING THE 'REFUSAL' PROCS; I CALLED DISPATCH AND EXPLAINED THAT I WOULD NOT BE ABLE TO ACCEPT THE ACFT. HE ASKED ME TO STANDBY AND THEN PATCHED IN A MAINT CTLR. THE CTLR EXPLAINED THE MEL CARD REQUIREMENT TO PHYSICALLY CHK THE ENG OIL QUANTITY AT EACH STATION WITH THE DEFERRAL OF THE OIL QUANTITY INDICATOR; AND THAT SHOULD SATISFY MY NEED TO KNOW THE OIL STATE. I EXPLAINED THAT IT WOULD NOT; WHICH HE QUESTIONED AND ASKED ME TO RESTATE MY REFUSAL OF THE ACFT. I DID. THE REFUSAL SEEMED TO REDIRECT THE PREVIOUSLY MENTIONED LINE MECH TO THE EFFORTS OF TROUBLESHOOTING THE INDICATOR PROBS. WITHIN MINS; HE RPTED TO ME THAT HE HAD CLEANED THE INDICTOR CONTACTS ON THE ENG MOUNT; AND THEN HE WENT ON TO INFORM ME THAT THE #1 ENG TOOK 6 1/2 QUARTS OF OIL IN ORDER TO REACH THE 'FULL' MARK. 10 MINS EARLIER; THE ACFT HAD BEEN SIGNED OFF WITH AN OIL QUANTITY INDICATOR DEFERRED AND NO PHYSICAL OIL LEVEL CHK.