I'm looking at this as though Trader Joe's was a different company... say Disney. Disney goes to great lengths to work out how its products are used, packaged and distributed to not only maximize profits, but also to maintain a certain image.
If I go to DisneyWorld, purchase a Mickey Mouse doll, an take it home. I have the right to do with that doll whatever I want: burn it, give it to my daughter, or resell it at whatever price I see fit.
However, I don't believe I have to right to go - as an agent of another (presumed competitor), purchase that same doll, and then resell it in my own store. I have no resell agreement with Disney to do so. In a typical reseller arrangement, wouldn't a store (e.g. Target) have an agreement with Disney to purchase bulk product for resell, presumably at a reduced price, but also under strict guidelines as to how it could do so? For example: cannot be sold above a certain price, cannot be sold next to adult content, etc.
On a side note: I have to believe that (while not a TJ problem or related to the lawsuit) there were other issues with what Pirate Joe's was doing related to imports, possible tariffs not being adhered to, etc.
Disney is a really bad choice because the Disney resell market is absolutely massive. Anytime they release limited release items there's a line of people buying as much as they can just to dump it on ebay.
I picked it more as an example of a company that goes to great lengths to maintain its image and quality. And one which I think reasonable people could understand why they choose to defend that image in court if their products were used in a way that could damage it.
In a typical reseller arrangement, the constraints on reselling are tied to the discount. There's nothing about Mickey Mouse that contravenes the first-seller doctrine when bought at retail.
If I go to DisneyWorld, purchase a Mickey Mouse doll, an take it home. I have the right to do with that doll whatever I want: burn it, give it to my daughter, or resell it at whatever price I see fit.
However, I don't believe I have to right to go - as an agent of another (presumed competitor), purchase that same doll, and then resell it in my own store. I have no resell agreement with Disney to do so. In a typical reseller arrangement, wouldn't a store (e.g. Target) have an agreement with Disney to purchase bulk product for resell, presumably at a reduced price, but also under strict guidelines as to how it could do so? For example: cannot be sold above a certain price, cannot be sold next to adult content, etc.
On a side note: I have to believe that (while not a TJ problem or related to the lawsuit) there were other issues with what Pirate Joe's was doing related to imports, possible tariffs not being adhered to, etc.
/IANAL