I bought a used imac & need to re-install Lion, must I really purchase -MY OWN- copy?

I bought an iMac used about a year ago from a guy who didn't like using a Mac.  I am trying to recover from the new second time that Lion has corrupted my filesystem willy nilly.   The first time I brought it into the apple store as I thought the disk was bad (and still think it may be) but they simply did a re-install (which took a WEEK. grand.)  I'm trying to avoid being out of work for another week on top of the 3 days I've been trying to re-install the OS.
I registered this iMac with my apple account but when I try to do internet recovery, it says 'This apple ID has not purchased lion'.
Seriously?  Really?  The OSX will only install on Apple computers but each owner has to have their own copy of the OS, even if he never intends to use a mac ever, ever again? 
Apologies if this sounds like a noob question but it seems absolutely ridiculous.  I bought it used because the premium for this hardware is ridiculous and I was expecting a more solid hardware experience.  Turns out you have shadier licensing practices than Microsoft.
Am I really up ***** creek until I cough up some cash for poor little Apple? 
God forbid I get to use the computer I physically own and paid for.

The Used computer you bought SHOULD have been sold with it's ORIGINAL Operating System Installed on it... Including any and all Discs.
If it was not then that is the source of your issue.
If you have Downloaded and Upgraded to Lion or Mountain Lion...
See...
Here is an excerpt of the SLA; the Lion license (purchased from MAS) is NOT transferable. The SLA is quite clear:
B. If you obtained your license to the Apple Software from the Mac App Store or on Apple-branded physical media, it is not transferable. If you sell your Apple-branded hardware to athird party, you must remove the Apple Software from the Apple-branded hardware beforedoing so, and you may restore your system to the version of the Apple operating systemsoftware that originally came with your Apple hardware (the “Original Apple OS”) andpermanently transfer the Original Apple OS together with your Apple hardware, provided that:(i) the transfer must include all of the Original Apple OS, including all its component parts,printed materials and its license; (ii) you do not retain any copies of the Original Apple OS, fullor partial, including copies stored on a computer or other storage device; and (iii) the partyreceiving the Original Apple OS reads and agrees to accept the terms and conditions of theOriginal Apple OS license.

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