(C,d) joins R':
presumably as a result of a lawsuit...
The intention is to show what actions preserve some selected desirable policies, by enumerating the actions, examining them and then pointing a finger at the bad ones and saying ``begone''.
For example, one could use the example policy decisions I used for the diagram and decide to make the arc labelled ERR disappear by making a customer leading a (registry,domain) pair turn into a complete disassociation of all three. (By the way, that's a terrible idea!)
Similarly, one could define the C (R,d) out of existence in favor of (C,d) R so long as there was a timeout state which would take the customer to the dissolution state if he didn't register wit somebody. And so on.