If you think that it should be ok, then how come, its not allowed under ebay's auction rules and also US law?

If he's saying he thinks it should be ok, ebay's rules aren't really relevant, as he's suggesting the rules are the problem.

You have a point, and I have another example: stolen goods. If your empeg was stolen, would you object if someone sold it on ebay? How about if they sold from somewhere that you were unable to bring the brunt of the law down on them from?