They sold it to me. I registered it in person while they were standing there working with my sim. Then after we parted ways, they reported it stollen, got a replacement with applecare or carrier insurance, and Apple bricks the old "stollen" phone. I ended up selling it bricked as a fancy Ipod, still works with wifi you just can make calls ever again after its locked by Apple. They only way to prevent that, is it have it switched over at a carrier, and have them release the phone from their account.
This was before Apple had much easier ways to remove devices. Now all you'd have to do is watch them remove the device from their account and reset the phone. Once they do that, they can't report it stollen. I didn't know all that back then and I learned the hard way.