I'm confused. The item is BoP. How could you buy it from someone else?
The only way I could see this being legal (in terms of the EULA / ToS) is if the item was BoE and you sell it in the AH or in a trade window.
From the link above:
For clarification, any virtual items that can be placed on the Auction House for sale, such as the majority of TCG pets/mounts or other in-game non-combat pets which are Bind on Equip may be purchased for gold.
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