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