It is rocket science apparently
Person A does what you said and goes on a cruise ship playing the game before giving the disc to Person B.
Person B takes his disc, installs the game with an online connection. The server has no way of telling that Person A is still playing the game on his cruise.
Person B finishes installing, goes to a camping trip before giving the disc to Person C....
Person C installs the game, unplugs the network from the Xbox and gives the disc to Person D...