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If you bought a retail copy, then yes you can sell it - although the next person to install it will likely have activation problems (nothing a phone call can't fix).
If it's an OEM copy, however, you're forbidden from passing it on (or even installing it on a machine other than the original).
If he removes it from the unit in question, its no longer tied to anything. All he has to do (within the eula) is to package it with a valid, necessary piece of hardware from the computer it came from.
If he removes it from the unit in question, its no longer tied to anything. All he has to do (within the eula) is to package it with a valid, necessary piece of hardware from the computer it came from.
I was under the definite impression that the EULA specifically states that an OEM license key is (legally, if not technically) tied to the hardware it's sold with. Strictly speaking, I guess, if you bought it with some memory then you can pass it on with the memory, but not on its own. There was a discussion on here somewhere back in the days when everyone was bitching about the ridiculous terms included in the original Vista EULA.