Be warned.... Don't lose your iPhone (Score 5, Informative)

A friend of mine works for a company selling the iPhone 2. According to him if you lose your iPhone 2 you will 1. Have to pay full price to get a new one (not too surprising imo) and 2. Re-sign up for a 2 year contract... Also according to him the employees have been instructed specifically to not mention this fact to customers. Pretty screwy to me. Then again I am ignorant of how most cell phones work so I don't know if this is standard or not. I'm assuming based on his reaction its not.