In 2), you never want to record any Series that is in reruns. So you would not be able to record any episodes from Seasons 1 - 7 of "Big Band Theory". You can set your subscriptions to record the Big Band Theory and it will only record the new episodes from Season 8.
Yaobing can confirm what the code actually does, but in all other systems that I have used your description would not be quite incorrect. Ask yourself; How does MC know a Season is in reruns?
First, I'm assuming that Reruns in MC are the same as Repeats in the PVR/DVR world. Repeats in the PVR/DVR world are programs that are flagged in the Electronic Program Guide (EPG) as Repeats. Usually, at least in Australia, programs are only flagged as Repeats in the EPG if they have been shown in the past on the same channel as the current repeat showing. Even then the programs are often not flagged as Repeats, since flagging them correctly is completely at the discretion of the TV station, and they often don't do it, since they want you to watch it again and see the commercials.
So using your example, if the user was in a location where Season 7 had never been shown, or it was shown on a different channel, even if that TV station did flag Repeats correctly, Season 7 episodes would still be recorded when the "Do not record reruns" flag was set in the recording subscription.