Well, everything I would say here has already been stated, so I'll just say that I'm SO happy to see most of my fellow-PTer's agreeing that a pet belongs in the house with its family, not in the yard. If you want something to live in your backyard, plant a tree.

Without a single doubt, I would absolutely deny an applicant one of my rescue dogs if they were going to keep it outside. I wouldn't go any further on the application - end of story.

And I also know, without a doubt, that if found out someone had violated my rescue contract, I WOULD take the dog back. I would, and I have. Breach of contract is illegal.