They would like to buy a site or volume license for my software.
Honestly, the best solution for this customer is to use floating licensing: http://wyday.com/limelm/help/using-turbofloat/
a) What happens when TurboActivated software is moved to another laptop?
When your app, using TurboActivate is activated, and then cloned to another computer, then your app will still be activated on the original computer, but will not be activated on the new computer (because the underlying physical hardware is different -- even if it's the exact same model of computer).
b) Is there any way TurboActivate can be used in this scenario?
Yes, you can with TurboActivate, but not in a way that's convenient for you or the customer. TurboFloat should be used in this case it solves your problem in the best way possible.
c) Can anyone think of a method that would work?
Yep: Use TurboFloat. The customer can configure your app using the TurboFloat library on their "initial state" machine such that it connects to their TurboFloat Server instance running somewhere in their company.
That way they can clone machines and they're ready to go and connect to the TurboFloat Server instance with 0 configuration.
Does that make sense?