That's not true, teams can waive passing a physical if they choose to complete a trade.
Really? I don't remember reading about that.
IIRC, Rafe LaFrance didn't pass his physical, but Danny wanted him anyway...or wanted Walker off the team so bad he didn't care whether Rafe could play or not.
Oh, and if Larkin hasn't signed a contract yet, his "rights" could be traded. The team acquiring those rights would have, what is it?, a year?, to ink him to a deal. I think that's for 1st round guys. For 2nd round guys you have their rights forever, I think.