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.
The correct answers for Legal and Only if must be an action that's legal and one that's required for the first to be legal "according to the court's ruling." So, to get this question correct, we must understand the court's ruling and restrict our reasons for choosing answers to what the court has ruled, which is the following:
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, ... any party wishing to resell such a license would first be required to disable the software on his or her computer.
Also, we have to be careful not to choose a trap choice since, as we're well aware, even seemingly easy GMAT questions can include tricky trap choices.
Party 1 purchases a license for Software S from Company C.
The court did not rule anything about an original purchase of a software license from a company.
Eliminate.
Party 1 disables Software S on his or her computer.
This choice may be correct for Only if since the court ruled that "any party wishing to resell such a license would first be required to disable the software on his or her computer."
So this choice appears to satisfy the condition required for one party to resell a software license to another party.
Keep.
Party 2 purchases a license for Software S from Company C.
The court did not rule anything about an original purchase of a software license from a company.
Eliminate.
Party 2 disables Software S on his or her computer.
This choice is a trap.
The court did rule that "any party wishing to resell such a license would first be required to disable the software on his or her computer."
However, none of the other answer choices involves Party 2 reselling software.
So, to get this question correct, we have to be careful not to mistakenly choose this choice for Only if.
Eliminate.
Party 1 resells his or her license for Software S to Party 2.
The court did rule that a party is "entitled to resell" software to a secondary party, under the condition stipulated
So, this choice is probably correct for Legal.
Keep.
Having seen all the choices, we can determine that the following must be the correct answers:
For Legal, Party 1 resells his or her license for Software S to Party 2.
For Only if, Party 1 disables Software S on his or her computer.