diff --git a/registrasion/controllers/conditions.py b/registrasion/controllers/conditions.py
index 51078016ef16cac2de8ac751e7d86fda21f22e57..72e592a2e88592ae075d10490b62b085fca1435f 100644
--- a/registrasion/controllers/conditions.py
+++ b/registrasion/controllers/conditions.py
@@ -172,11 +172,20 @@ class ProductConditionController(IsMetByFilter, ConditionController):
 
         in_user_carts = Q(enabling_products__productitem__cart__user=user)
         released = commerce.Cart.STATUS_RELEASED
+        paid = commerce.Cart.STATUS_PAID
+        active = commerce.Cart.STATUS_ACTIVE
         in_released_carts = Q(
             enabling_products__productitem__cart__status=released
         )
+        not_in_paid_or_active_carts = ~(
+            Q(enabling_products__productitem__cart__status=paid) |
+            Q(enabling_products__productitem__cart__status=active)
+        )
+
         queryset = queryset.filter(in_user_carts)
-        queryset = queryset.exclude(in_released_carts)
+        queryset = queryset.exclude(
+            in_released_carts & not_in_paid_or_active_carts
+        )
 
         return queryset
 
diff --git a/registrasion/tests/test_flag.py b/registrasion/tests/test_flag.py
index 094ac1a406f7d8fa8762c29617fea3f060afb27b..3d8914a1586b5657273d9e8e5fc51eca65190272 100644
--- a/registrasion/tests/test_flag.py
+++ b/registrasion/tests/test_flag.py
@@ -6,6 +6,7 @@ from registrasion.models import commerce
 from registrasion.models import conditions
 from registrasion.controllers.category import CategoryController
 from controller_helpers import TestingCartController
+from controller_helpers import TestingInvoiceController
 from registrasion.controllers.product import ProductController
 
 from test_cart import RegistrationCartTestCase
@@ -350,3 +351,34 @@ class FlagTestCases(RegistrationCartTestCase):
         # and also PROD_1, which is now exhausted for user.
         items = commerce.ProductItem.objects.filter(cart=cart.cart)
         self.assertTrue([i for i in items if i.product == self.PROD_1])
+
+    def test_product_stays_enabled_even_if_some_are_cancelled(self):
+        ''' Flags should be enabled, even if *some* enabling products are cnx.
+        Tests issue #68.
+        '''
+
+        self.add_product_flag()
+        cart1 = TestingCartController.for_user(self.USER_1)
+
+        with self.assertRaises(ValidationError):
+            # Can't do this without PROD_2
+            cart1.add_to_cart(self.PROD_1, 1)
+
+        cart1.add_to_cart(self.PROD_2, 1)
+
+        inv = TestingInvoiceController.for_cart(cart1.cart)
+        inv.pay("Lol", inv.invoice.value)
+
+        cart2 = TestingCartController.for_user(self.USER_1)
+        cart2.add_to_cart(self.PROD_2, 1)
+
+        inv.refund()
+
+        # Even though cart1 has been cancelled, we have the item in cart2.
+        # So we should be able to add PROD_1, which depends on PROD_2
+        cart2.add_to_cart(self.PROD_1, 1)
+
+        cart2.set_quantity(self.PROD_2, 0)
+
+        with self.assertRaises(ValidationError):
+            cart2.add_to_cart(self.PROD_1, 1)