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(See the complete passage discussion here: lsat/viewtopic.php?t=11038)
The correct answer choice is (A)
The justification for the correct answer choice can be found on:
In order to prephrase the answer to this question, we must consider points of disagreement between the exhaustion theorist and the territorialist. Their main point at issue concerns trademark protection for products registered within a given territory. In these situations, the exhaustion theorist would rule that there is no trademark protection post-sale, while the territorialist would rule that there is trademark protection for products in the country where they are registered. The correct answer choice is (A), in part because it is the only choice which discusses home-country registration, which we prephrased as the main point at issue. Answer choice (B) is wrong because none of the theories seek to restrict the rights of trademark owners to sell. Answer choice (C) provides a scenario which the two theories would agree provides no protection, and choices (D) and (E) are not mentioned in the passage.