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Many software companies distribute their software by selling licenses that entitle the purchaser to download the software from the software company over the Internet. Some of these companies prohibit the resale of these licenses by the original purchaser to another party (secondary purchaser). However, a court has ruled that such a license, once sold, is wholly the property of the purchaser, who is therefore entitled to resell it to a secondary purchaser, who would then be entitled to download the software from the software company. However, the court did stipulate that any party wishing to resell such a license would first be required to disable the software on his or her computer.
Select for Legal and Only if the actions such that, according to the court's ruling as described in the information provided, the first action is legal only if the second action has taken place. Make only two selections, one in each column.
Party 1 purchases a license for Software S from Company C.
Party 1 disables Software S on his or her computer.
Party 2 purchases a license for Software S from Company C.
Party 2 disables Software S on his or her computer.
Party 1 resells his or her license for Software S to Party 2.
| Passage Statement | Analysis & Implications |
| "Many software companies distribute their software by selling licenses that entitle the purchaser to download the software" |
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| "Some of these companies prohibit the resale of these licenses" |
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| "Court ruled that such a license, once sold, is wholly the property of the purchaser, who is therefore entitled to resell it" |
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| "Secondary purchaser would then be entitled to download the software" |
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| "Court did stipulate that any party wishing to resell such a license would first be required to disable the software" |
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Based on the court's stipulation, the clearest inference is:
The court ruling states: "any party wishing to resell such a license would first be required to disable the software on his or her computer."
This perfectly matches our selection: