well since you said end of story that means its over.
To the OP, tell your brother that while he is technically violating the terms he agrees to with apple. If he wants to sell it, thats his risk. From personal experience I have purchased a laptop and applecare under the education discount, and transferred the warranty as well as the computer ownership. Apple did this for me, they facilitated the sale in a sense. I view the risk as very minimal, and I believe that intentions would come into play, as long as he is not flipping the hardware for profit. In practice, you would violate the agreement, but at the same time, wanting to upgrade in a year or two is not unreasonable and would not violate the spirit of the agreement.