Using PayPal is a really bad way to sell bitcoins, because PayPal lets the buyer dispute the transaction, reversing payment. If you sell bitcoins via PayPal, you're taking a big counterparty risk (not to mention the 3rd party, PayPal itself).
Edit: My Localbitcoins user is vivab0rg if you'd like to check.
What would be the alternative? CC, ACH, and most other payment systems also have a mechanism for chargebacks.
Seriously, this is precisely the kind of thing common law and the court system is for. Just the same as your recourse with cash. As for international trade, buyer beware.