What gives web hosting sites the right to sell websites.?

What gives web hosting sites the right to sell websites.?
There are a ton of web hosting sites, but where do they get the websites, that they sell, from?

1       They own the servers that host the websites and they sell the server space to people.

2       They actually have web servers and they “rent out” web server capacity to those who want to host their web site on their web server.

It is a business – similar to any other site that offers something for rent or lease.