Oh yes it is... I was meeting someone at HKG and my battery gave out. Luckily, the landside bookshop had mobiles and the Nokia 1100 was about US$45.

Clerk: "Sorry, I cannot sell you this phone. It will not work in the United States".
Me: "But I'm not BUYING it for use in the United States. My phone has failed and I need one just for now."
Clerk: "Sorry. You must buy 'this' phone (pointing to 3xxx series phone that was about 2.5x the price"
Me: "Ok, how about this. I am buying the phone to use only for today here in Hong Kong after which I will gift it to my friend from Europe."
Clerk: "(confused look) I need to see your friend's passport."
Me: "They aren't here yet, they haven't landed. They're going to call my phone to tell me where to meet them and mine has died. That's why I'm buying this one."

I never even had a second thought about it... just all part of the HKG 'experience'. That mentality also makes for some amazing customer service in other situations... I WISH people in the US cared as much!