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Legal Question

I was just curious if buying/selling a modded system, ps2, xbox, etc is illegal. I know selling/buying copied games is illegal but is selling/buying a modded system illegal?
 
I would guess no, as I see them in FS/T all the time and I am sure the moderators would have put a stop to it if it were illegal.
 
I think it is illegal to sell a modded xbox with the software installed, ie dashboard. But it's ok to sell one with the modchip installed without software.
 
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